ETFs
Major Banks Adopt Bitcoin ETFs, Driving Trading Volume to New Highs
Bitcoin ETF trading activity just reached a new high. According to Feeling, the seven largest ETFs collectively hit $5.65 billion in volume, the most active day since late March. This surge suggests a change from the usual large-scale chain accumulations by whales.
Big banks enter the Bitcoin ETF market
Three days ago, American banking giants JP Morgan and Wells Fargo stepped into the Bitcoin spotlight. These banks have disclosed their engagement with spot Bitcoin ETFs in recent filings, which is a dramatic policy shift since previously these banks had approached the cryptocurrency with great caution, often debating the notion of involving their clients in such investments.
Wells Fargo deposit with the United States Securities and Exchange Commission (SEC), revealed that it owns 2,245 shares of Grayscale Bitcoin Trust (GBTC), with a market value of $121,207. These shares have since been converted into ETFs.
Additionally, the bank owns 37 shares of ProShares Bitcoin Strategy ETF (BITO), worth $1,195. The move highlights a new, proactive approach to cryptocurrency by one of America’s leading banks.
Not to be outdone, JP Morgan has also stepped up its crypto game. The SEC of the bank deposit highlighted massive investments in several Bitcoin-related funds, including BlackRock’s iShares Bitcoin Trust (IBIT), Fidelity’s Wise Origin Bitcoin Fund (FBTC), Grayscale Bitcoin Trust (GBTC), Bitwise Bitcoin ETF, and ProShares Bitcoin Strategy ETF (BITO) .
In total, JP Morgan invested approximately $760,000 in these funds. The timing of these investments coincides with a notable rise in the price of Bitcoin, which has increased by almost 7% in the last 24 hours alone, surpassing the $66,000 mark.
Bitcoin price rise and economic context
This recovery aligns with recent economic data from the United States. The Consumer Price Index (CPI) report showed that core inflation fell to a three-year low of 3.4%. This drop in inflation is a green light for many investors, including some of the world’s largest banks, to increase their stakes in Bitcoin, viewing it as a hedge against inflation.