Two of the largest banks in the United States have announced and unveiled their investment in Spot Bitcoin Exchange Traded Funds (ETFs), signifying a major cryptocurrency adoption by traditional financial outfits.
This historical event happens as Bitcoin price continues to dip to around $60,000.
According to NewsBtc, American banking giants JP Morgan and Wells Fargo have revealed their investment exposure to Bitcoin by disclosing their adoption of spot Bitcoin ETF in a recent filing.
This decision by the two biggest banks in America reflects a sharp turnaround in the bank’s previous cautious position on cryptocurrencies and whether their clients should be investing in them.
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).
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.
What to know
- Despite the surge in interest of traditional financial outfits in Bitcoin. The digital asset has failed to pick up a bullish momentum as the price continues to drop. Since the significant halving event on April 20, Bitcoin has not gone on a bullish run as the price continues to drop to as low as $57,000.
- Since Bitcoin hit an all-time high of $73,000 in March, the Digital asset has seen a 14.20% drop in value over the past month and is currently trading at $60,000.
- Nairametrics earlier reported that JP Morgan’s CEO Jamie Dimon referred to cryptocurrencies as a Ponzi scheme this came before the decision of his bank to now invest in Spot Bitcoin ETF.
