Merrill Lynch Bans Shoppers from Investing in Bitcoin Fund

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Merrill Lynch, the brokerage arm of Financial institution of America, has blocked monetary advisers and shoppers from buying and selling in bitcoin-related investments.

The ban extends to shoppers buying and selling in Grayscale's Bitcoin Funding Belief, a fund led by bitcoin entrepreneur Barry Silbert. The choice to dam entry to the fund was on account of considerations concerning the "suitability and eligibility requirements of this product," an inner memo circulated to roughly 17,000 advisers states.

In line with the Wall Street Journal, the financial institution has prolonged a ban on just lately launched bitcoin futures contracts. A WSJ supply stated Merrill Lynch put the coverage in place on Dec. eight, simply two days previous to the launch of bitcoin futures by CBOE.

The supply additionally stated that present bitcoin funds can't be held in fee-based advisory accounts, however could be maintained in brokerage accounts.

Silbert, a former Wall Road funding banker, informed Reuters:

"We sit up for talking with Merrill Lynch and addressing any questions or considerations they've concerning the Bitcoin Funding Belief. We're unaware of any comparable insurance policies at different brokerage companies."

The Futures Business Affiliation (FIA) published an open letter to the CFTC earlier than the launch of bitcoin futures, airing considerations over the method during which cryptocurrency futures have come to market. Massive banks and brokers together with JPMorgan Chase, Citigroup, and Royal Financial institution of Canada have all denied shoppers entry to bitcoin futures, the WSJ report says.

Disclosure: Grayscale Investments is a subsidiary of Digital Foreign money Group, CoinDesk's father or mother firm.

Merrill Lynch picture by way of Shutterstock

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