Bank of America Corp’s (NYSE:BAC) Merrill Lynch is no longer allowing trading in products connected to bitcoin.
News of the ban comes from a leaked memo that was sent out to advisors last month. The ban doesn’t allow financial advisors or clients from trading in investments connected to bitcoin. This ban includes the Bitcoin Investment Trust and bitcoin futures.
Merrill Lynch’s reason for the ban is that it has concerns about the “suitability and eligibility standards” of the products. The new policy went into place on Dec. 8, which was just two days before bitcoin futures started trading on the CBOE.
There is an exception to the rule about bitcoin trading at Merrill Lynch. Brokerage accounts that are already trading in bitcoin investments can continue to do so. However, those that are present in advisory accounts must be sold, reports CoinDesk.
Merrill Lynch isn’t the only one that has concerns about bitcoin and other virtual currencies. There have been talk that the bitcoin bubble popping could lead to
The SEC has also been warning investors about bitcoin and the possible unique dangers that it can present to those holding it. This includes an increased chance of being targeted by scammers, the high volatility of the cryptocurrency and more. This warning also extends to the other various virtual currencies that are gaining popularity alongside bitcoin.
BAC stock was up 1% as of Thursday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.
