ETFs
Bitcoin ETFs Skyrocket as 3rd Largest US Bank Reveals Ownership in New Filing
In a notable development highlighting the growing interest of traditional financial institutions in Bitcoin (BTC), Wells Fargo, the third largest bank in the United States, revealed its exposure to spot Bitcoin ETFs.
The United States Securities and Exchange Commission (SEC) approved index funds regulated in January, allowing institutions like Wells Fargo to invest in the largest cryptocurrency on the market.
The move signifies a significant entry into the Bitcoin market for the bank, as spot Bitcoin ETFs offer a regulated investment vehicle for institutional investors seeking exposure to Bitcoin price movements without directly owning the asset.
Wells Fargo and BNY Mellon invest in Bitcoin ETFs
According to a recent deposit, Wells Fargo holds positions in various spot Bitcoin ETFs. The bank invested in Grayscale’s Bitcoin Spot ETF, Grayscale Bitcoin Trust (GBTC), ProShares Bitcoin Strategy Futures ETF and shares in Bitcoin Depot Inc.
Wells Fargo’s disclosure follows a growing trend among major banks and traditional asset managers investing in spot Bitcoin ETFs. As reported According to Bitcoinist, the Bank of New York Mellon Corporation (BNY Mellon), one of the oldest and largest banks in the United States, also revealed its investments in Bitcoin ETFs managed by BlackRock and Grayscale.
BNY Mellon’s engagement with Grayscale involved buy stocks of Grayscale’s Bitcoin Trust, while its participation in BlackRock’s IShares Bitcoin Trust (IBIT) included the acquisition of shares of the ETF. These investments, although symbolic in their size, underline the bank’s recognition of the potential of Bitcoin as an asset class.
BlackRock and Fidelity exceed $10 billion in assets in record time
The rapid growth and adoption of Bitcoin ETFs is remarkable. Eric Balchunas, ETF expert at Bloomberg sharp It is worth noting that before the introduction of Bitcoin ETFs, the record for an ETF reaching $10 billion in assets was held by the JPMorgan Nasdaq Equity Premium ETF (JEPQ), which took almost three years.
However, Black Rock IBIT reached this milestone in 49 days, while Fidelity’s FBTC ETF accomplished it in 77 days. These ETFs have also demonstrated significant trading volume and inflows, indicating the growing interest and demand for Bitcoin investment products.
In summary, Wells Fargo’s disclosure of its spot Bitcoin ETF exposure highlights the growing involvement of traditional banks in the cryptocurrency market. As more institutions recognize the potential of Bitcoin and seek regulated investment vehicles, spot Bitcoin ETFs have emerged as an attractive option.
Currently, the largest cryptocurrency on the market, Bitcoin, is trading near the critical resistance level of $61,000, which is of significant importance to the potential growth of BTC.
However, recent market movements have caused Bitcoin to retrace its gains from the weekend, with a 1.2% price decline observed over the past seven days. This decline impacted the short-term performance of the cryptocurrency.
Featured image from Shutterstock, chart from TradingView.com