Wells Fargo, the third-largest U.S. bank, has disclosed its investment in a bitcoin ETF fund, signaling the growing interest of traditional financial institutions in bitcoin (BTC).
The US Securities and Exchange Commission (SEC) approved the regulated index fund in January, allowing institutions such as Wells Fargo to invest in the largest #cryptocurrency on the market.
The move represents a significant step into the #bitcoin market for banks. This is because the bitcoin spot #ETF is a regulated investment vehicle for institutional investors who want to follow the price movement of bitcoin without owning it directly.
According to a recent report, Wells Fargo holds positions in various bitcoin spot ETFs. The bank has invested in #Grayscale Bitcoin ETF, Grayscale Bitcoin Trust (GBTC) Spot Bitcoin ETF, ProShares Bitcoin Strategy Futures Fund and shares of Bitcoin Depot Inc.
As reported by Bitcoinist, one of the oldest and largest banks in the United States, The Bank of New York Mellon Corporation (BNY Mellon), is following the growing trend of large banks and traditional asset managers investing in spot bitcoin ETFs. The corporation (BNY Mellon) also disclosed its investment in a bitcoin ETF managed by #BlackRock and Grayscale.
BNY Mellon's partnership with Grayscale was to buy a stake in Grayscale's bitcoin trust, while the bank's participation in BlackRock's IShares Bitcoin Trust (IBIT) was to buy a stake in the ETF. These investments, albeit on a token scale, demonstrate the bank's recognition of bitcoin's potential as an asset class.
The rapid growth and popularity of bitcoin ETF funds is noteworthy. Bloomberg ETF expert Eric Bartunas noted that prior to the bitcoin ETF, the record for ETF assets reaching $10 billion was held by JP Morgan's Nasdaq Equity Premium ETF (JEPQ), which took nearly three years to reach $10 billion.
However, BlackRock's IBIT ETF and Fidelity's FBTC ETF reached that milestone in 49 and 77 days, respectively.
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