One of the country’s largest financial advisory groups has established a rule banning people from getting into bitcoin investments or anything else related to the currency. Merrill Lynch has announced that its 17,000 advisors can no longer endorse investments that relate to the bitcoin, let alone the bitcoin itself.
The report comes from the Wall Street Journal. WSJ reporter Lisa Beilfuss wrote that the policy from Merrill Lynch was introduced on December 8. This came right before the first bitcoin futures in the United States were introduced. However, information on this move from the firm did not come out to the public until now.
Clients associated with Merrill Lynch are also being asked to not trade the bitcoin or else they could be removed from services. This includes trading with the Grayscale bitcoin investment trust or GBTC.
The concern from Merrill Lynch comes as there are concerns over whether such investments, including those from the GBTC, are suitable for people to enter into. The GBTC is an over the counter investment and is not traded through the New York Stock Exchange or any other prominent formal option. The trust focuses on getting people to trade the bitcoin through a more conventional trading vehicle.
This continues some of the moves Merrill Lynch has gotten into with regards to restricting bitcoin activities. The firm had outlawed access to bitcoin futures being offered by CME and Cboe.
Interest In General
Merrill Lynch did confirm that there have been some people calling to ask about bitcoin-related investments in recent time. However, those requests have been turned down due to worries about the currency and how it is moving along.
An anonymous adviser with Merrill told the WSJ that there are worries about how the bitcoin has no full regulation. The adviser states that people often invest in currencies because those are based on the ongoing economy and governmental functions associated with those currencies. However, people who buy the bitcoin or any other currency are just buying that particular currency without anything else going into it. This has created worries with some people over how well the currency could come about.
Ongoing Concerns
The moves from Merrill Lynch come amid ongoing worries about how the value of the bitcoin is organized. Although the bitcoin has skyrocketed in value in recent time, it has also experienced some significant shifts in its value over that same time period. This has led to concerns over whether or not the bitcoin is a bubble or if it is a legitimate investment for people to look into.
JPMorgan Chase, Citigroup and the Royal Bank of Canada have also declined to get into bitcoin-related activities. Berkshire Hathaway has also directly stated that the bitcoin is too risky and that governments might try and step in before something difficult happens with the currency. Other groups are expected to make statements on the bitcoin in the future, but until then they may be interpreted as being willing to work with the digital currency for various needs or demands.
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View Comments
Hi Vladimir can you send me a link so I can invest in ethereium 2.0. I cannot find any info anywhere
Hi Roy
There are no specific links, you get that via exchanges
Sir...
I'm belong from middle class and i invested in crypto, kindly tell me is it safe to invest for 2018 ?
Thanks!
Hi
I think yes. Don't invest money you can't allow to lose though
Nice... Keep posting more about this..
Thanks so much for your post