UBS to Allow Select Clients to Trade Bitcoin ETFs, Contrary to Rumors: Source

UBS, the Zurich-based banking giant, has reportedly decided to allow certain clients to trade bitcoin exchange-traded funds (ETFs), contrary to earlier rumors. A person familiar with the matter, who requested anonymity, revealed that UBS will impose certain conditions on these trades. One of the conditions is that UBS will not actively solicit the trades, meaning that clients will have to express their interest in trading bitcoin ETFs on their own. Additionally, accounts with a lower risk tolerance will not be eligible to purchase these ETFs.

When approached for comment, a UBS spokesperson declined to provide any further information on the matter. However, this move by UBS comes as bitcoin ETFs made their highly anticipated debut in the market. On the first day of their availability, these ETFs witnessed billions of dollars worth of trading activity.

In contrast to UBS, Vanguard, a prominent US-based investment firm, announced that it will not allow its customers to trade bitcoin ETFs. Earlier in the day, there were unconfirmed rumors suggesting that UBS might follow Vanguard’s lead and refrain from offering these ETFs. However, UBS has now confirmed its decision to allow certain clients to trade bitcoin ETFs.

Several major players in the finance industry, including BlackRock, Fidelity, and Invesco, have already started offering bitcoin ETFs. Charles Schwab, a leading US brokerage firm, has also confirmed that it will enable its clients to trade these ETFs.

Proponents of bitcoin ETFs believe that they will significantly expand the investor base for bitcoin. This is because purchasing ETFs is generally considered easier and more accessible than buying bitcoin directly. The introduction of bitcoin ETFs by various financial institutions is seen as a step towards mainstream adoption of cryptocurrencies.

It remains to be seen how UBS’s decision to allow certain clients to trade bitcoin ETFs will impact the market and whether other financial institutions will follow suit. As the popularity of cryptocurrencies continues to grow, the availability of ETFs linked to these digital assets is expected to play a crucial role in attracting more traditional investors to the crypto space.