In a move that sounds similar to that of JPMorgan Jamie Dimon's CEO, Wall Street bank, Merrill Lynch has banned its financial advisors to buy Bitcoin-related investments for their clients. According to an internal memo reviewed by the Wall Street Journal, the decision came when the main bank had problems with compliance and product feasibility standards.
Merrill Lynch Adjustment Advisor
The decision taken by Merrill Lynch prevents some 17,000 advisers from doing something with Bitcoin or even executes client requests to exchange Grayscale Bitcoin Investment Trust (GBTC).
GBTC is one of the main roads where Bitcoin can be traded on Wall Street. These are traded on the table, not through formal venues like the New York Stock Exchange. Bitcoin is the top two funds traded on the Stock Exchange, surprisingly one of the best performing ETFs of last year.
The recent opening of futures at CME and CBOE has also spawned a new way in which institutionalized investors can engage in these new assets without fear of wandering into unregulated waters.
However, Merrill Lynch has acted on these roads because it previously banned access to the futures.
The view of how JPMorgan distanced itself from their CEO's comments showing that avoiding bitcoin will be even more energetic. Bitcoin's success on Wall Street remains to be seen as the $ 20,000 price rally is catalyzed by upcoming futures announcements, but since its launch, there has been a decline in Bitcoin's performance.
According to John D'Agostino, a former Nymex executive and current exchange board member, many are trying to get into the game, but are wondering if they can do so in the rules.
This ban, from the ICO ban in China to the ban by banks, was also caused by misunderstanding and lack of knowledge. Many of Bitcoin's supporters were disappointed with Jamie Dimon for his lack of knowledge, and the same seems to apply to Merrill Lynch.
Wamda Capital CEO Fadi Ghandour says that Jamie Dimon needs to be aware of what angle he uses to talk about bitcoin. Ghandour asked Jamie Dimon not to issue an incomprehensible statement.