ETFs
Wells Fargo (WFC) announces investments in Bitcoin ETFs
According to a regulatory filing, Wells Fargo & Company WFC has announced exposures to cryptocurrencies through investments in numerous Bitcoin exchange-traded funds (ETFs). The move indicates the growing interest of financial institutions in digital assets.
According to the filing, Wells Fargo purchased shares of Grayscale’s GBTC Bitcoin spot ETF, giving the bank $141,817 exposure to the digital asset. Additionally, Wells Fargo invested less than $1,200 in the ProShares Bitcoin Strategy ETF (BITO). This provides investors with exposure to Bitcoin futures, which will allow them to speculate on future price movements of the cryptocurrency.
Additionally, the bank has $99 exposure to Bitcoin Depot Inc., a Bitcoin ATM provider. Although the company has made a foray into the cryptocurrency space, its investments in these vehicles are relatively modest.
This filing follows the announcement that WFC is seeking to offer its wealth management clients the ability to invest in Bitcoin ETFs through brokerage accounts.
The Company’s Wealth and Investment Management segment offers customized wealth management, brokerage, financial planning, lending, private banking, trust and fiduciary products and services to high net worth, high net worth and ultra high net worth clients. -fortunate.
In the last reported quarter, WFC reported total revenue of $3.7 billion for this segment, indicating a year-over-year increase of 2%. Additionally, total client assets of $2.18 trillion increased 13% year-over-year.
However, total revenue growth has become difficult at Wells Fargo. Revenue has experienced a negative compound annual growth rate of 1.2% over the past four years (2019-2023). Although this indicator saw a slight increase in the first quarter of 2024, it will also be affected in the coming period due to rising financing costs.
Business sales also led to a loss of revenue. Notably, Wells Fargo divested approximately $2 billion of private equity investments in certain funds to a group of high-profile investors in September 2023. Additionally, volatility in fee income continues to affect overall performance . In 2024, management expects net interest income (NII) to decline 7-9% from $52.4 billion in 2023.
Over the past six months, WFC shares have surged 45.6%, compared to the industry’s 32.8% growth.
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Currently, WFC sports a Zacks Rank #1 (Strong Buy).
Other actions to consider
Some other top-ranked stocks in financials are Northern Trust Company NTRS and UMB Financial Company UMBF, each currently sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The story continues
NTRS earnings estimates for 2024 have increased 7.4% over the past month. Northern Trust shares have gained 16.3% over the past six months.
UMBF’s earnings estimates for 2024 have increased by 14.4% over the past 30 days. Shares of UMB Financial have surged 16.1% over the past six months.
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