New analysis dispels a widespread false impression in regards to the ubiquity of bitcoin (BTC) possession within the US. Regardless of the prevalence of BTC and its ETFs, a majority of property in home brokerages nonetheless keep away from the foreign money.
Many BTC traders mistakenly consider the period of its exclusion from Wall Road has ended. Certainly, after the January 2024 Securities and Change Fee (SEC) approval of BTC spot ETFs and a 2025 endorsement from the CEO of Blackrock itself, over 1.1 million cash are already buying and selling on US exchanges by way of spot ETFs.
As these ETF custodians have wolfed up over 5% of BTC’s provide, the common particular person may be beneath the impression that any US resident can purchase it or its listed proxies. Many brokerages declare to permit clients to purchase the foreign money or its spot ETFs.
In actuality, nonetheless, the overwhelming majority of property beneath administration at main brokerages usually are not flowing into BTC. Past low allocations and a choice for different sorts of diversification, many US brokerages limit BTC-related investments altogether.
Particularly, new analysis estimates that accounts containing greater than $38 trillion in property on the 10 largest US brokerages don’t enable BTC-related investments in any respect.
As well as, many brokerage and retirement accounts have mandates that limit funding in BTC-related merchandise. Examples embody retirement accounts following target-date, annuity, insurance coverage, or mutual fund methods.
Bitcoin disallowed from $38 trillion of US brokerage property
In keeping with boutique analysis outfit Tephra Digital, 10 of the most important US brokerages with $65.7 trillion in property beneath administration (AUM) limit roughly $38.2 trillion of these property from touching BTC.
Tephra Digital researchers reviewed web sites and SEC filings and interviewed brokerage advisors to compile its information. They cite figures for Constancy, Vanguard, Schwab, Morgan Stanley, UBS, JP Morgan, Merrill/Financial institution of America, Goldman Sachs, Wells Fargo, and Citi.
Out of those 10 banking and brokerage giants, solely three permitted unrestricted BTC investments for considerably all clients: Constancy, Schwab, and Wells Fargo.
UBS, JP Morgan, Merrill / Financial institution of America, and Goldman Sachs don’t enable their funding advisors to advocate BTC.
They’ll promote you junk bonds & penny shares however not Bitcoin. $38T in property nonetheless blocked, advisors can’t even advocate it. TradFi is enjoying catch up. Bitcoin doesn’t want permission. Be early. 🚀 pic.twitter.com/SElUHf6FTD
— Eric Weiss ⚡️ (@Eric_BIGfund) April 1, 2025
A commenter really useful including Edward Jones to the record of brokerages that don’t enable BTC investments.
Regardless of a widespread perception that BTC or its spot ETFs are accessible in almost each funding account within the US, many brokerages nonetheless place limits on BTC-related investments, forbid their advisors to advocate it, or refuse to permit allocations altogether.
