The announcement and launch of investments in Spot Bitcoin Exchange Traded Funds (ETFs) by two of the biggest US banks indicates a significant uptake of cryptocurrencies by established financial institutions.
This momentous occasion occurs as the price of bitcoin continues to decline to about $60,000.
The adoption of a spot Bitcoin ETF by US banking behemoths JP Morgan and Wells Fargo has disclosed their investment exposure to Bitcoin, according to a recent filing, which was obtained by NewsBtc.
The two largest banks in America have made a decision that indicates a significant shift from their earlier cautious stance on cryptocurrencies and whether or not their clients should be investing in them.
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Wells Fargo revealed its new position on crypto when it disclosed in its new filling to the United States Securities and Exchange and Commission (SEC) that it currently holds 2,245 shares of Grayscale Bitcoin Trust (GBTC), valued at $121,207, which it has since converted into an ETF.
Additionally, the American bank holds 37 shares of the ProShares Bitcoin Strategy ETF (BITO), valued at $1,195.
JP Morgan which holds about $2.9 trillion in assets under management also revealed its total spot BTC ETF holding in an SEC filing.
The bank reported that it had purchased about $760,000 worth of shares of 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).
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JP Morgan also owns about 25,021 shares valued at $47,000 in cryptocurrency ATM provider, Bitcoin Depot. JP Morgan unveiled its investment in crypto hours after Wells Fargo announced its own investment.
The move by both banks despite regulatory uncertainties and market volatility in crypto signifies the growing demand for cryptocurrencies particularly Bitcoin by traditional financial outfits.
Bloomberg Senior Analyst Eric Balchunas predicted that most traditional financial institutions in the United States would follow the footsteps of JP Morgan and Wells Fargo to unveil their holdings in Spot Bitcoin ETF soon
