UBS and Citi to Allow Eligible Customers Trade Bitcoin ETFs

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by Alisa Davidson

Published: January 12, 2024 at 4:59 am Updated: January 12, 2024 at 4:59 am

by Victor Dey

Edited and fact-checked:
January 12, 2024 at 4:59 am

In Brief

UBS and Citi announced that they will allow certain clients to trade Bitcoin ETFs.

UBS and Citi to Allow Some Customers Trade Bitcoin ETFs

Swiss bank and financial services company UBS announced that it will allow certain clients to trade Bitcoin exchange-traded funds (ETFs), subject to specific conditions. The bank stated it can not promote such trades, while accounts with a lower risk tolerance will be restricted from purchasing Bitcoin ETFs.

Likewise, another prominent American bank and financial services corporation Citigroup, stated that it currently offers access to recently approved Bitcoin ETFs for its institutional clients, focusing on execution and asset servicing. Additionally, the bank is in the process of evaluating these products for potential inclusion among individual Wealth clients.

Prior to these updates, customers of investment firms Citi, Merrill Lynch, Edward Jones and UBS had reported encountering difficulties in purchasing spot Bitcoin ETFs on the respective platforms. The recent disclosure led to confusion among customers, particularly in the aftermath of Vanguard’s decision to prohibit the purchase of spot Bitcoin ETFs on its brokerage platform, prompting broader concerns.

🚨SCOOP: @MerrillLynch also currently not allowing their customers access to the $BTC Spot ETFs. According to a source who received guidance from the company earlier this week, Merrill is waiting to see whether the ETFs trade efficiently before making any decisions to change… https://t.co/Fu810vdWn1

— Eleanor Terrett (@EleanorTerrett) January 11, 2024

Vanguard announced that spot Bitcoin ETFs don’t align with their focus on asset classes such as equities, bonds, and cash, which they consider as the foundational elements of a well-balanced, long-term investment portfolio. The company did not join the 14 issuers who applied for a spot Bitcoin ETF in 2023.

Bitcoin ETFs Garner Interest on Debut Day

Bitcoin ETFs generated significant enthusiasm upon their debut on Thursday, witnessing the the exchange of billions of dollars’ worth on the first day of their availability. Prominent asset management companies including Grayscale, BlackRock, and Fidelity are now among those offering Bitcoin ETFs.

Recently, Charles Schwab, a major US brokerage, stated that it would allow clients to trade these ETFs, reflectinig a growing trend of established financial players entering the Bitcoin ETF market. Optimists believe that Bitcoin ETFs have the potential to significantly expand the investor base for Bitcoin, as acquiring ETFs is considered more accessible than purchasing Bitcoin directly.

Recent announcements from major financial institutions UBS and Citigroup highlight their decisive steps in navigating the new digital asset landscape amidst the evolving dynamics in the Bitcoin ETF market.

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About The Author

Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and engagement with scientific writing.

Alisa Davidson