With the official approval of the Bitcoin spot ETF by the SEC, major financial institutions on Wall Street have responded differently. Asset management giant Vanguard and Merrill Lynch Securities are currently not allowing trading of the 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 fund company with assets under management second only to BlackRock, has decided not to allow its clients to purchase Bitcoin spot ETF. A Vanguard customer service representative explained the reasons behind this decision, stating:
“A Bitcoin ETF is a complex investment product that may not be suitable for all investors. Vanguard believes that investors should have a clear understanding of the potential risks associated with investing in digital assets.”
The Vanguard spokesperson further confirmed that there are currently no plans to launch a Bitcoin ETF or other crypto-related products, emphasizing:
“Our primary focus is on offering a broad range of low-cost, high-quality investment options that meet our clients’ needs, and we will continue to evaluate the potential risks and rewards of investing in digital assets.”
Merrill Lynch temporarily does not allow Bitcoin spot ETF
In addition, FOX reporter Eleanor Terrett stated in a post on X that Merrill Lynch, as one of the world’s largest retail securities firms and investment banks, currently does not allow its clients to participate in Bitcoin spot ETF trading. However, this policy may not be permanent, as a source said:
“While Merrill Lynch is not currently allowing its clients to trade Bitcoin spot ETF, it is possible that this policy could change in the future.”
UBS and Citigroup allow partial client trading
In contrast to Vanguard and Merrill Lynch’s conservative approach, UBS and Citigroup have taken a more open strategy. According to sources cited by CoinDesk, banking giant UBS will allow some of its clients to trade Bitcoin spot ETF under certain conditions, including banning UBS from actively promoting these trades and imposing restrictions on clients with low risk tolerance.
Meanwhile, a spokesperson for Citigroup stated that they currently offer trading and asset services for Bitcoin spot ETF to 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 the Bitcoin spot ETF, it does not mean that all private financial institutions must accept them. Now, we can further understand their attitudes towards Bitcoin and cryptocurrencies based on whether major institutions open up trading of Bitcoin spot ETF to their clients. Clearly, skepticism still prevails on Wall Street regarding this emerging asset class.