Merrill, a significant player remembered from the 2008 crisis, and Vanguard, the second-largest asset manager, are both cautious about cryptocurrency. Their cautious approach is one thing, but they also create problems for crypto by blocking their clients’ access to spot Bitcoin ETFs. However, this could change soon. Recent news shows that the two traditional finance giants have attracted more criticism than expected on this issue.
Merrill and Vanguard’s Crypto Currencies
Spot Bitcoin ETF investments require the permission of the bank or asset manager you work with. However, two of the US’s financial giants focus on risks such as high volatility and limit their clients’ access to these investments. The easiest solution for investors is to work with different companies. And it seems they have started to do just that.
Eleanor Terrett from Fox Business wrote a few minutes ago that the two companies have started to draw more and more criticism due to a “lack of vision.” The reason for her comment was an experience shared by Mike Alfred. Mike said;
“I called Merrill and Vanguard and told both companies that I was withdrawing all my money from all accounts. Representatives from both companies connected me to a senior account manager, and in both cases, this person apologized profusely for the management’s lack of vision, admitted to investing personally in Bitcoin, and said they received literally thousands of calls from customers wanting to move their accounts. This is the beginning of a larger movement.”
Customers and Crypto
For asset managers or banks, customer demands must be significant. With plenty of alternatives, these institutions can easily lose customers, and their hard-won crowds may switch sides due to the allure of competitors’ attractive offers.
BlackRock and JPMorgan, for instance, have adopted an overly harsh stance against crypto in the past, but they realized they had to build on their customers’ ideas rather than their own due to intense client demand.
Currently, BlackRock is one of the largest investors in MicroStrategy and holds these shares for its clients. Customers are buying MSTR shares, seen as an indirect BTC ETF, due to the potential they see in cryptocurrencies. At some point, it’s likely that others will come to this realization and change their stance.
