U.S. Financial Giants Embrace Spot Bitcoin ETFs, as Brazil Welcomes IBIT

  • Spot Bitcoin ETFs are seeing significant inflows, with Bitcoin price reaching new highs in several countries.
  • The brokerage divisions of Bank of America Corp. (specifically its Merrill subsidiary) and Wells Fargo & Co. are now providing their clients with access to Bitcoin ETFs.
  • In Brazil, BlackRock’s iShares Bitcoin Trust ETF is set to launch, marking a notable entry into the digital asset space by a major investment firm.

The Spot Bitcoin ETFs are doing better than expected amid hundreds of millions of dollars in daily inflows. Meanwhile, the price of Bitcoin is approaching new highs in several countries, including Australia, where it surpassed all-time highs and neared AUD $100,000, reaching AUD $97,446 overnight.

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This blend of Bitcoin’s price climb, ETF buzz, and a fresh wave of interest in the crypto world has got traditional financial players excited to get in on the action and share in the profits. As Bloomberg reports two major banks are readying themselves to offer access to the Spot ETFs.

Bank of America Corp.’s Merrill division, alongside Wells Fargo & Co.’s brokerage services, are extending access to Bitcoin-focused exchange-traded funds (ETFs) to their wealth management clientele.


Move Indicates A Broader Shift Towards Bitcoin and Crypto

This move illustrates the growing acceptance of Bitcoin-related products among mainstream financial firms. The ETFs are available to clients with brokerage accounts who specifically request these products, as per sources who wished to remain anonymous, the report said.

This comes after reports that Morgan Stanley is contemplating adding the ETFs to their trading platform. Many others already offer varying Bitcoin related products such as UBS.

Charles Schwab Corp. and Robinhood Markets Inc., started offering the Spot Bitcoin ETFs to their clients shortly after the Securities and Exchange Commission (SEC) had approved them in January.

Brazil’s Enthusiastic Adoption of Cryptocurrency

Brazilians have been early adopters of crypto, currently 3.2 million people in the country hold crypto, a recent study by the Receita Federal do Brasil, the Federal Revenue Service reveals. Estimates put Brazil together with the United States and Australia as the country with the highest rate of Bitcoin adoption.

Related: Analyst Sheds Light: Are Retail Investors Returning to the Game?

While the reasons for holding cryptocurrency vary between the US and Australia and Brazil, the latter’s context is particularly compelling. Over a quarter of Brazilians live below the poverty line, creating a fertile ground for cryptocurrencies as an innovative financial solution.

Against this backdrop, the launch of BlackRock’s Spot Bitcoin ETF, the iShares Bitcoin Trust ETF (IBIT39), in Brazil is timely as InfoMoney reports. Trading on B3, Brazil’s stock exchange, this initiative by BlackRock taps into the growing interest in digital assets within the country, offering a novel investment channel in a market eager for accessible financial innovations.

This is a significant move by BlackRock, introducing Bitcoin-based Brazilian Depositary Receipts (BDRs) to the local market.

BlackRock’s Brazilian President Karina Saade said this reinforced BlackRock’s venture into the digital asset world by providing its customers with high class investment opportunities, while also highlighting that the step is not an endorsement of the asset class.

Our goal is to serve our customers with safe and transparent products. We have no recommendation or any expectations regarding Bitcoin itself.

Karina Saade

Aaron Feuerstein

Aaron Feuerstein

Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.

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