Merrill Lynch paves way for clients to invest in Bitcoin via ETFs

Bank of America’s wealth management arm, Merrill Lynch, is diving into the cryptocurrency market by offering spot Bitcoin exchange-traded funds (ETFs) to a select group of its clients, reports Reuters.

This move underscores the growing institutional interest in Bitcoin and the increasing demand for regulated investment options in the cryptocurrency space.

The availability of these ETFs comes shortly after the landmark approval of such products by the U.S. Securities and Exchange Commission (SEC) in January.

Unlike traditional Bitcoin investments, which involve directly holding the cryptocurrency, spot Bitcoin ETFs provide investors with exposure to its price movements without the complexities and potential security risks associated with self-custody.

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Merrill Lynch’s entry into the Bitcoin ETF market signifies another significant step towards mainstream adoption of cryptocurrencies. The SEC’s approval has opened the door for new investors, particularly those hesitant about directly holding volatile digital assets, to participate in the cryptocurrency market. This has contributed to the recent surge in Bitcoin’s price, which surpassed $60,000 for the first time in over two years this week.

However, not all financial institutions are embracing the Bitcoin trend. Vanguard, the leading provider of mutual funds, has stated it has no current plans to offer Bitcoin ETFs on its platform.