Investment Bank Merrill Lynch, the brokerage unit of Bank of America, banned financial advisers and clients to make investments related to bitcoin.
The ban applies to clients trading in the investment Fund Grayscale BitcoinInvestment Trust.
Grayscale Bitcoin Investment Trust (GBTC) is a trust Fund dedicated exclusively to bitcoin, the yield of which is determined by the metrics of the cryptocurrency. It was created as a tool for traditional investors who want to earn on the growth rate of bitcoin. GBTC is headed by businessman Barry Silbert.
The decision to block access to the Foundation due to fears concerning the “suitability and viability of the standards of this product.” This was reported in an internal note circulated among Merrill Lynch 17 thousand financial advisers.
According to the Wall Street Journal, informed Merrill Lynch refused to grant clients access to futures on bitcoin. This occurred on 8 December – two days before the launch of new futures contracts by Chicago Board options exchange (CBOE).
It is reported that existing scriptactive cannot be stored on a paid Advisory accounts, but supported brokerage accounts.
Silbert, a former investment banker on wall street in an interview with Reuters said:
“We look forward to negotiations with Merrill Lynch that will help to resolve any issues or problems with an investment Fund Bitcoin Investment Trust. We are not aware of similar policies at other brokerage firms.”
Association Futures Industry Association (FIA) has published an open letter to the CFTC before the launch of futures on bitcoin, which has caused concern about the process of entering the futures cryptanalytic on the market. Big banks and brokers including JPMorgan Chase, Citigroup and Royal Bank of Canada, also notified its customers about the denial of access to futures on bitcoin.