Bank of America (BAC.N), Merrill Lynch, and Wells Fargo have introduced spot bitcoin exchange-traded funds (ETFs) to eligible wealth management clients, reflecting the rising interest in this asset class.
According to a source familiar with Bank of America’s plans, these ETFs have been accessible to clients for several weeks following the Securities and Exchange Commission’s (SEC) approval of such investment vehicles in January.
“Spot bitcoin ETFs are available for unsolicited purchases through an advisor with Wells Fargo Advisors or through our online WellsTrade platform,” stated Wells Fargo in an email on Thursday, outlining accessibility options for interested investors.
Spot bitcoin ETFs provide exposure to the leading cryptocurrency without requiring direct ownership.
Last month, 11 such ETFs commenced trading in the United States after years of SEC scrutiny, marking a significant development for the asset class.
These ETFs have broadened the investor base for bitcoin, reigniting interest that waned during the cryptocurrency downturn of 2022, often referred to as the “crypto winter.”
Some investors have even shifted their focus from gold-backed ETFs to bitcoin, considering it as a digital equivalent of gold.
“We remain convinced that bitcoin is on an 18-month path to $150,000 led by unprecedented institutional adoption,” commented Bernstein analyst Gautam Chhugani earlier this week, reflecting optimism in the market.
Bitcoin surged to $60,000 on Wednesday, reaching a milestone not seen in over two years.
Earlier reports from Bloomberg Law had hinted at the moves made by BofA and Wells Fargo in offering these ETFs to their clients.
However, Vanguard, the largest provider of mutual funds, has announced no intentions to incorporate spot bitcoin ETFs into its platform for brokerage clients, indicating differing strategies among investment firms.