- New research reveals that $38 trillion in assets at the 10 largest US brokerages cannot be invested in Bitcoin-related products.
- Only three of the top 10 US brokerages (Fidelity, Schwab, and Wells Fargo) permit unrestricted Bitcoin investments for most customers.
- Despite Bitcoin ETFs holding over 5% of BTC supply, most institutional assets remain restricted from Bitcoin investment.
Despite widespread perceptions of Bitcoin’s mainstream acceptance, new research from Tephra Digital reveals that $38.2 trillion in assets at America’s largest brokerages remain restricted from Bitcoin investments. This reality persists even after the SEC’s approval of Bitcoin spot ETFs in January 2024 and recent endorsement from BlackRock‘s CEO.
The research highlights a stark contrast between apparent accessibility and actual restrictions. While Bitcoin spot ETFs now hold over 1.1 million coins (representing more than 5% of Bitcoin’s supply), the majority of institutional assets cannot touch Bitcoin-related investments at all.
According to Tephra Digital’s findings, only three of the top 10 US brokerages allow unrestricted Bitcoin investments: Fidelity, Schwab, and Wells Fargo. The research team compiled their data through website reviews, SEC filings analysis, and interviews with brokerage advisors.
Major Banks Restricting Bitcoin Access
Four major financial institutions – UBS, JP Morgan, Merrill/Bank of America, and Goldman Sachs – specifically prohibit their investment advisors from recommending Bitcoin investments to clients. This restriction persists despite these institutions allowing investments in other high-risk assets.
A social media commenter also noted that Edward Jones should be added to the list of brokerages prohibiting Bitcoin investments, suggesting the restrictions may be even more widespread than initially documented.
Institutional Barriers Remain Strong
Many retirement and brokerage accounts face additional barriers through mandates that restrict Bitcoin-related investments. These include retirement accounts following target-date strategies, annuities, insurance products, and mutual funds.
The disparity between public perception and institutional reality remains significant. While many believe Bitcoin’s era of exclusion from Wall Street has ended, these findings suggest institutional adoption faces continued resistance from traditional financial gatekeepers.
These restrictions persist despite Bitcoin’s increasing prominence and the creation of regulated investment vehicles specifically designed to provide traditional investors with Bitcoin exposure.
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