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Spot Bitcoin ETFs are reportedly not currently available for purchase on brokerage platforms such as Citi, Merrill Lynch, Edward Jones, and UBS.
The decision by asset manager Vanguard to refrain from allowing the purchase of spot Bitcoin exchange-traded funds (ETFs) on its platform appears to have prompted some customers to explore other options. Vanguard cited a misalignment with its traditional offerings, emphasizing a focus on asset classes like equities, bonds, and cash.
Vanguard, not among the 14 issuers applying for a spot Bitcoin ETF in 2023, is seen by some investors as a reason to shift funds to alternative platforms. One customer claims Vanguard justified its decision by stating that spot Bitcoin ETFs don’t align with the company’s investment philosophy.
Coinbase’s senior engineering manager, Yuga Cohler, expressed intentions to move Roth 401(k) savings from Vanguard to Fidelity, which launched one of the 10 spot Bitcoin ETFs on January 11. Cohler criticized Vanguard’s “paternalistic blocking” of Bitcoin ETFs, stating it doesn’t align with his investment philosophy.
Bitcoin commentator Neil Jacobs is also in the process of transferring funds out of Vanguard in response to the reported decision, calling it a “terrible business decision.”
Customers of Citi, Merrill Lynch, Edward Jones, and UBS reported similar issues, unable to purchase spot Bitcoin ETFs on those platforms. UBS is evaluating unsolicited offers from potential spot Bitcoin ETF investors on a case-by-case basis. Citi mentioned a spot Bitcoin ETF being available for institutional clients, with ongoing evaluations for individual wealth clients.
Merrill Lynch is reportedly assessing the efficiency of spot Bitcoin ETF trades before deciding to offer these products for purchase. In contrast, JPMorgan’s brokerage platform allows spot Bitcoin ETF trading, with the bank sharing risk disclosures for prospective investors.