With the official approval of a Bitcoin spot ETF by the SEC, major financial institutions on Wall Street have had different reactions. Asset management giant Vanguard and Merrill Lynch currently do not offer trading of this product. In contrast, UBS and Citigroup are allowing some clients to participate.
Vanguard refuses to offer Bitcoin spot ETF
However, according to The Block, Vanguard, the second-largest fund company in terms of assets under management after BlackRock, has decided not to allow its clients to purchase Bitcoin spot ETFs. A Vanguard customer service representative explained the reasons behind this decision, stating:
Vanguard spokesperson further confirmed that there are currently no plans to launch a Bitcoin ETF or other cryptocurrency-related products, emphasizing:
Merrill Lynch temporarily does not offer Bitcoin spot ETF
In addition, FOX reporter Eleanor Terrett tweeted that Merrill Lynch, as one of the world’s largest retail brokers and investment banks, currently does not allow its clients to participate in Bitcoin spot ETF trading. However, this policy may not be permanent, as sources have indicated:
UBS and Citigroup allow some clients to trade
In contrast to the conservative approach of Vanguard and Merrill Lynch, UBS and Citigroup have adopted a more open strategy. According to CoinDesk, citing anonymous sources, UBS, the banking giant, will allow some of its clients to trade Bitcoin spot ETFs under specific conditions, including the prohibition of UBS actively promoting these trades and restrictions on low-risk tolerance clients.
Meanwhile, a spokesperson for Citigroup stated that they currently offer Bitcoin spot ETF trading and asset services for institutional clients and are evaluating whether these products are suitable for their individual wealth clients.
Although the US Securities and Exchange Commission (SEC) has approved Bitcoin spot ETFs, it does not mean that all private financial institutions have to accept them. Now, we can further understand their attitudes towards Bitcoin and cryptocurrencies by whether major institutions are allowing their clients to trade Bitcoin spot ETFs. Clearly, skepticism still prevails on Wall Street regarding this emerging asset class.
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