Merrill Lynch, Wells Fargo begin offering Bitcoin ETFs to clients

Leading US investment platforms Merrill Lynch and Wells Fargo are now offering Bitcoin spot ETFs to clients, despite hesitation on the move.

As reported by Bloomberg, the firms are offering ETFs to some wealth management clients who specifically request the product, allowing clients to invest directly in BTC through an ETF wrapper.

Merrill Lynch embraces Bitcoin

Last month, Merrill Lynch, the investment management unit of Bank of America, was one of the major US firms to be reprimanded for clients' initial reluctance to use ETFs after their historic launch last month.

At the time, Fox Business reported that Merrill Lynch was waiting to see if ETFs could trade effectively before changing its internal policy that disallows such products.

By all measures, ETFs have had a very successful start. After approval, shares of funds such as Grayscale Bitcoin Trust (GBTC) now trade at near par with their BTC value after years of trading at a discount.

ETFs collectively handled a record $7.7 billion in trading volume on Wednesday, with net inflows of $673 million. BlackRock and Fidelity's Bitcoin ETFs proved to be two of the most successful ETF launches in history after thirty days.

Given their proven demand, many analysts suspect that major cable houses will rush to deliver the products to their customers for fear of missing out.

“I'm sure there's increasing pressure on them,” Bloomberg ETF analyst Eric Balchunas told X on Wednesday. “They like to see [a] Track and get paid, but with the underlying interest they are like that. [are] I have to hurry.”

Meanwhile, Bitwise CIO Matt Hougan believes ETFs are still waiting for a wave of demand from investment platforms that don't offer their customers.

“I think there's going to be an even bigger wave in a few months when we start to see the main wirehouses light up…but this is the Bitcoin IPO moment,” he told CNBC on Thursday.

Vanguard still opposes Bitcoin

While Merrill accepts EFAs, Vanguard — the world's second-largest asset manager after BlackRock — still does not allow clients to buy assets through its platform, citing differences in investment philosophies.

The company is still a large investor in MicroStrategy and several major Bitcoin mining companies.

On Thursday, Vanguard CEO Tim Buckley stepped down after a 33-year run.