Bank of America Says “No Thanks” to Bitcoin Investment Trust
Just last month, Bank of America Merrill Lynch pulled the plug on its clients wanting to buy shares of the Bitcoin Investment Trust (BIT), citing “suitability and eligibility” concerns. It’s a decision that has traders, fans, and the crypto‑crowd scratching their heads.
What’s the Story?
- On December 8, the brokerage stopped approving new orders for BIT.
- The move came after a memo sent to about 17,000 Merrill Lynch and Merrill Edge brokers.
- BIT, a product managed by Grayscale Investments and spearheaded by Barry Silbert, had been a go‑to for investors looking to ride the Bitcoin boom.
Barry Silbert’s Take
Sir Silbert shot back via an email, saying he’s “looking forward to talking with Merrill Lynch” and that he’s confused by the policy. “We’re not aware of similar restrictions at other firms,” he added, sounding a bit like a trader who just discovered that the coffee machine was broken.
Why the Chill on Crypto?
Wall Street, understandably wary, treats crypto like a peach that’s both sweet and easy to bruise. The unregulated market’s wild swings have made banks tread carefully.
- Last month, Cboe Global Markets and CME Group launched bitcoin futures, but many banks still hold back.
- JPMorgan’s CEO Jamie Dimon warned of a bubble, calling Bitcoin a “fraud that will eventually blow up.”
How the Ranks Were Affected
- Clients with past BIT positions can keep them, keeping the gold‑mine vibes for a while.
- Those in fee‑based advisory accounts… must sell. It’s a hard sell but a necessary one.
- So if you’re a “retail” trader at Merrill Edge, the window’s closed.
The Numbers That Made Some Flip Out
BIT gave investors a chance to sit on a portion of love‑joy bitcoin without buying a whole token, which is now valued at roughly $15,000. Last year, BIT’s gains were a staggering 1,550%, beating Bitcoin itself at 1,300%. Investors were clawing at the moon.
Bottom Line
Bank of America’s move signals a cautious, and perhaps a bit paranoid, stance on crypto. Think of it like a parent telling their child that dancing on a trampoline isn’t safe. While the crypto world keeps on sprinting, traditional brokers are still learning to keep their footing. Happy trading, and remember: always double‑check the fine print before you dive in again.
