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UBS and Citigroup Rebuke the Rumors and Allow Bitcoin ETF Trading

UBS and Citigroup open the door for Bitcoin ETFs

UBS and Citigroup have announced their foray into Bitcoin Exchange-Traded Funds (ETFs), signaling a growing acceptance of cryptocurrency products in mainstream finance. UBS, the esteemed Zürich-based bank, is now offering select clients the ability to trade in Bitcoin ETFs, albeit with certain stipulations. 

Citigroup spokesperson:

“currently provides our institutional clients with access to the recently approved Bitcoin ETFs from an execution and asset servicing perspective,"

"evaluating the products for individual Wealth clients.”

These conditions include a non-solicitation clause and a restriction barring accounts with lower risk tolerance from participating. This move, while cautious, marks a significant departure from the conservative stance traditionally held by major banks towards cryptocurrency ventures.

Industry context and future outlook

The context of this development is particularly striking against the backdrop of Vanguard's contrasting decision to prohibit its customers from trading Bitcoin ETFs. The enthusiasm surrounding the debut of Bitcoin ETFs has been palpable, with billions traded on their first day. This enthusiasm is not unfounded; industry optimists assert that Bitcoin ETFs could substantially broaden the investor base for Bitcoin, simplifying the investment process as compared to direct bitcoin purchases. 

Despite earlier rumors, other financial heavyweights, including BlackRock, Fidelity, and Invesco, are also venturing into Bitcoin ETFs. This trend underscores a gradual but definitive shift in the financial sector's approach to cryptocurrency, possibly heralding a new era of digital asset investment.