U.S. Asset Managers with $38 Trillion in AUM Are Yet to Embrace Bitcoin

Despite Bitcoin’s (BTC) integration into mainstream finance with the advent of exchange-traded funds (ETFs), approximately $38 trillion of capital held by some of the largest U.S. brokerages remains restricted from Bitcoin investments, according to Tephra Digital.

Seven out of the ten largest U.S. asset managers remain skeptical of BTC, as noted by the CEO of Bitcoin Investment Group, Eric Weiss, in a post on X.

Tephra Digital researchers found that major brokerages like Vanguard, Morgan Stanley, UBS, JP Morgan, Merrill Lynch/Bank of America, Goldman Sachs, and Citi have at least some restrictions or limitations on Bitcoin. These include restricted account access, exposure caps, net worth requirements, and applicable waivers.

Additionally, UBS, JP Morgan, Merrill/Bank of America, and Goldman Sachs do not allow their investment advisors to recommend Bitcoin to clients.

“They’ll sell you junk bonds & penny stocks but not Bitcoin. $38T in assets is still blocked; advisors can’t even recommend it. TradFi is playing catch-up. Bitcoin doesn’t need permission,” added Weiss in the X post.

Only three firms, Fidelity, Schwab, and Wells Fargo, allow unrestricted BTC investments for most of their customers.