Bitcoin
JP Morgan and Wells Fargo are the latest major banks to disclose Bitcoin exposure through ETFs
JP Morgan and Wells Fargo are the latest major global banks to disclose exposure to Bitcoin through some of the BTC exchange-traded funds launched in January.
The two lenders filed their 13F disclosures on May 10, revealing a modest investment in Bitcoin ETFs.
JP Morgan disclosed $731,246 in Bitcoin ETF spot investments on BlackRock I BITEBit by bit BITBFidelity FBTCand in shades of gray GBTC. The majority of the amount – US$477,425 – was invested in IBIT. Meanwhile, Wells Fargo reported a $141,817 investment in Grayscale’s GBTC during the first trimester.
Previous disclosures revealed that both BNP Paribas and BNY Mellon also invested amounts in Bitcoin ETFs, signaling a growing trend among traditional financial institutions despite modest exposures.
Additionally, other large banks, including Morgan Stanley and UBS, haveindicated an intention to allow clients to invest in Bitcoin ETFs on spot. However, the two lenders have not yet disclosed direct exposure to Bitcoin as of press time.
Industry experts, including BlackRock’s head of digital assets, believe the trend of institutional flows into Bitcoin ETFs is just beginning with volume expected to increase as more sophisticated money such as sovereign wealth funds begin to enter the sector.
BlackRock 13F
Black stone disclosed a $6.6 million investment in its own IBIT fund in its 13F filing on May 10.
The company’s strategy follows other Bitcoin ETF spot issuers that have similarly invested in their own funds. Arca Invest holds US$206.4 million of its ARKB fund, while Van Eck holds $98,000 of his HODL bottom.
BlackRock’s latest investment follows BlackRock’s solid IBIT performance. The fund has the highest cumulative flows of any spot Bitcoin ETF, at $15,490, and is the second largest spot Bitcoin ETF in terms of assets under management.
BlackRock’s IBIT also set a new record by reaching $10 billion in AUM. Bloomberg ETF Analyst Eric Balchunas commented on the trend, noting:
“The record speed for an ETF to reach $10 billion in assets was held by JEPQ, which did it in 647 trading days… IBIT got there in 49 days, FBTC in 77 days.”
TradFi entering Bitcoin
Chicago-based hedge fund CTC Alternative Strategies reported a $27.7 million investment in IBIT on May 9.
Other financial institutions and companies that have recently disclosed investments in spot Bitcoin ETFs include Hightower Consultants, US Bank, South State, Susquehanna International Group, Burkett Financial ServicesIt is Legacy asset management.
The companies above are some of hundreds of other companies that have made similar disclosures in their 13F filings since spot Bitcoin ETFs launched in January.
According to data from Fintel, more than 240 companies have invested in IBIT, while more than 130 companies have invested in FBTC. More than 467 companies have invested in Grayscale’s GBTC, which existed before its conversion to an ETF in January.