Bank of America’s brokerage arm Merrill Lynch has banned members, along with financial advisors, from participating in Bitcoin investments funds
According to an internal memo Merrill Lynch has specified one fund in particular, Grayscale’s Bitcoin Investment Trust. GBIT was founded by previous investment banker Barry Silbert, who has since become a major bitcoin entrepreneur and industry investor.
A quote from the memo:
“The decision to close GBTC to new purchases is driven by concerns pertaining to suitability and eligibility standards of this product.”
The stop will be issued to Merrill Lynch’s 17,000 strong investment team, disallowing them from suggesting Bitcoin tied securities and refusing client requests to trade in Silbert’s fund. Existing positions by clients in the bitcoin fund will be allowed to continue in basic brokerage accounts.
Large & established investment banks have long been wary of investments in the crypto space. Even with launch of Bitcoin futures late last year, the likes of Citigroup, Bank of America and others have completely blocked clients from Bitcoin or other crypto backed securities.
Source: https://www.wsj.com/articles/merrill-lynch-bars-trading-of-bitcoin-fund-futures-1515016825