As investment gurus like Jeremy Grantham warn of a "true, crazy mini-bubble" in the Bitcoin market, the wirehouse firms are telling advisors and investors that products related to this cryptocurrency are not being sold on their platforms.
Merrill Lynch moved to end client purchases of the Grayscale Bitcoin Investment Trust on Dec. 8, for instance. It also does not allow advisors and clients to trade Bitcoin futures, which began trading Dec. 10.
"The decision to close GBTC to new purchases is driven by concerns pertaining to suitability and eligibility standards of this product," the firm said at the time in a memo. (Clients who invested in the Bitcoin fund before Dec. 8 can, however, keep these assets in brokerage accounts.)
As for Morgan Stanley, "Our financial advisors currently do not offer our Wealth Management clients access to securities or derivatives linked to the price of Bitcoin or other digital currencies," according to a spokesperson.
