jakiro
Source: Galaxy; Compiled by: Bitchain Vision
Last Tuesday, Bank of America (BofA) announced that starting in January 2026, its financial advisors will be allowed to recommend Bitcoin investments to clients.By then, four U.S. spot Bitcoin ETFs will be available on the bank’s wealth management platforms, including Merrill Lynch, Bank of America Private Bank and Merrill Lynch.Meanwhile, Bank of America chief investment officer Chris Hyzy recommends allocating 1% to 4% of your portfolio to Bitcoin, which echoes Morgan Stanley’s recommendations in October.
On the same day,Vanguard opens its platform to third-party cryptocurrency ETFs and mutual funds.It was previously reported that the company was considering such a move.The newly launched products cover Bitcoin, Ethereum, Ripple and Solana.
Meanwhile, Charles Schwab has set a timetable for launching spot trading on Bitcoin and Ethereum, targeting mid-2026.Charles Schwab CEO Rick Wurster revealed the company’s plan in an interview with CNBC on July 18.
Galaxy’s perspective:
The story of institutional cryptocurrency adoption continues.
In our Oct. 17 briefing, we reported that Morgan Stanley had lifted restrictions on the use of crypto funds by its financial advisors and that Bank of America was following suit; in addition, we reported on Vanguard Group’s plans to offer crypto funds to its clients and Citigroup’s plans to launch crypto custody services in 2026.
Three of the four largest U.S. brokerages have now lifted restrictions on cryptocurrency investments:Bank of America lifted restrictions this week, Morgan Stanley lifted restrictions in October, and Wells Fargo Advisors had added a spot Bitcoin ETF to its brokerage platform’s recommended list months ago.The last company that has not yet lifted restrictions is UBS Financial Services.While we hear little from UBS in the cryptocurrency space, the firm offers limited and conditional cryptocurrency investment access to select clients.Perhaps the reason UBS has been slow to ease restrictions is that its parent company, based in Switzerland, may face additional regulatory hurdles, and it must also consider its global presence and focus on non-U.S. clients.
In addition to large brokerages, Vanguard, the world’s second-largest asset management company, has also begun allowing customers to trade cryptocurrency ETFs and mutual funds.The move was rumored to have been in the works as early as late September, in stark contrast to the company’s previous skepticism towards cryptocurrencies.When the U.S. Spot Bitcoin ETF launches in 2024, Vanguard told Business Insider:
“While we continue to evaluate our brokerage services and evaluate the possibility of new products entering the market, the spot Bitcoin ETF will not be available for purchase on the Vanguard platform. We also have no plans to offer the Vanguard Bitcoin ETF or other cryptocurrency-related products.”
“We believe these products are inconsistent with our focus on asset classes such as stocks, bonds and cash, which Vanguard believes are the foundation for building a balanced long-term portfolio.”
These attitudinal changes stem primarily from customer demand.As cryptocurrencies gain regulatory recognition and become increasingly integrated into the traditional financial system, investors are increasingly seeking relevant investment opportunities to avoid missing out on potential opportunities.As more companies open up trading channels, competitive pressures will intensify, especially as back-end supply is no longer an obstacle.The U.S. Securities and Exchange Commission (SEC) has simplified the listing process for cryptocurrency ETFs; a wider range of products are available, providing investors with more choices; and the growth in assets under management has also improved liquidity.
Vanguard allows trading of not only spot Bitcoin ETFs but also a number of other cryptocurrency funds and may support more regulatory-compliant cryptocurrency products, while Bank of America (BofA) only allowed trading of four spot Bitcoin ETFs in January.It’s worth noting that Vanguard does not recommend any specific Bitcoin portfolio allocation.Its decision to allow trading of cryptocurrency funds is more indicative of the philosophy of providing investors with more choices.
We have pointed out before that opening up these distribution bottlenecks in the U.S. financial market would unlock approximately $30 trillion in assets managed by 300,000 financial advisors.According to reports,Bank of America serves about 70 million customers and manages more than $2 trillion in assets, while Vanguard manages 50 million accounts and has assets of $11 trillion.Combined, the market opportunity is as high as US$13 trillion.Even an allocation of just 1% would bring about $130 billion in inflows, which would more than double the total inflows to U.S. spot cryptocurrency ETFs since their inception.
Bitcoin is first to go online, and it’s likely that Ethereum and other altcoins will follow suit on platforms that haven’t yet embraced them.As we mentioned in previous briefings, these flows tend to be more stable and less sensitive to short-term fluctuations, which in turn can reduce market volatility and attract more institutional capital.
