Merrill Lynch, the brokerage subsidiary of Bank of America, has prevented its financial advisors and its customers to negotiate investment related to Bitcoin.
Logo Bitcoin Investment Trust/The Enterprise Daily
Merrill Lynch wants to counter the rise of the futures contracts of Bitcoins
This prohibition extends to customers who traded on the platform of “Bitcoin Investment Trust” to Grayscale. The decision to block access to Funds, Bitcoin was motivated by concerns about ” eligibility standards of this digital asset. “This internal note of service was distributed to approximately 17 000 regional councillors. According to an information published by the Wall Street Journal, the bank has extended a previous ban on the futures contracts of the Bitcoin. Another source of the Wall Street Journal reported that Merrill Lynch had a policy put in place on 8 December 2017 ; just two days before the launch of futures contracts on the platform CBOE. This same source has also confirmed that the fund Bitcoin existing could not be held in accounts with fees, but in brokerage accounts.
Invest in Bitcoin/Coinmunity
The approach of Merrill Lynch is not isolated
Silbert, an investment banker of Wall Street, told Reuters : “We look forward to discussing with Merrill Lunch and answer all the questions or concerns they have regarding the Bitcoin Investment Trust. Moreover, we are not aware of similar policies implemented by other brokerage firms. “The Futures Industry Association (FIA) has published an open letter to the Commodity Futures Trading Commission (CFTC) in the United States before the introduction of futures contracts of a Bitcoin, in which it expressed its concerns regarding the process of introduction of futures contracts of crypto-currencies. In addition, always according to the Wall Street Journal, the big banks and large brokerage firms, including JPMorgan Chase, Citigroup and the royal Bank of Canada, have all denied their clients access to futures contracts of Bitcoins.
Source : Coindesk