$38 trillion in US brokerages still restricted from bitcoin, report
According to boutique research outfit Tephra Digital, 10 of the largest US brokerages with $65.7 trillion in assets under management (AUM) restrict approximately $38.2 trillion of those assets from touching BTC
New research dispels a widespread misconception about the ubiquity of bitcoin (BTC) ownership in the US. Despite the prevalence of BTC and its ETFs, a majority of assets in domestic brokerages still avoid the currency.
Many BTC investors mistakenly believe the era of its exclusion from Wall Street has ended. Indeed, after the January 2024 Securities and Exchange Commission (SEC) approval of BTC spot ETFs and a 2025 endorsement from the CEO of Blackrock itself, over 1.1 million coins are already trading on US exchanges via spot ETFs.
As these ETF custodians have gobbled up over 5% of BTC’s supply, the average person might be under the impression that any US resident can buy it or its listed proxies. Many brokerages claim to allow customers to buy the currency or its spot ETFs.
In reality, however, the vast majority of assets under management at major brokerages are not flowing into BTC. Beyond low allocations and a preference for other types of diversification, many US brokerages restrict BTC-related investments altogether.
Specifically, new research estimates that accounts containing more than $38 trillion in assets at the 10 largest US brokerages do not allow BTC-related investments at all.
In addition, many brokerage and retirement accounts have mandates that restrict investment in BTC-related products. Examples include retirement accounts following target-date, annuity, insurance, or mutual fund strategies.
Bitcoin disallowed from $38 trillion of US brokerage assets
According to boutique research outfit Tephra Digital, 10 of the largest US brokerages with $65.7 trillion in assets under management (AUM) restrict approximately $38.2 trillion of those assets from touching BTC.
Tephra Digital researchers reviewed websites and SEC filings and interviewed brokerage advisors to compile its data. They cite figures for Fidelity, Vanguard, Schwab, Morgan Stanley, UBS, JP Morgan, Merrill/Bank of America, Goldman Sachs, Wells Fargo, and Citi.
Out of these 10 banking and brokerage giants, only three permitted unrestricted BTC investments for substantially all customers: Fidelity, Schwab, and Wells Fargo.
UBS, JP Morgan, Merrill / Bank of America, and Goldman Sachs do not allow their investment advisors to recommend BTC.
