Key Takeaways:
American banking powerhouses JPMorgan Chase and Wells Fargo became the latest financial institutions to disclose exposure to Bitcoin (BTC) through multiple spot BTC exchange-traded funds launched in the US earlier this year.
On May 10th, both lenders filed their 13F paperwork with the US Securities and Exchange Commission (SEC), which revealed their investments in the Bitcoin-backed investment funds.
The 13F form must be filed quarterly by institutional investment managers with at least $100 million in assets under management. The filings are intended to provide Congress with transparency on the holdings of America’s largest investors.
13F Filings Reveal American Banks’ Exposure to Bitcoin Through Spot and Futures ETFs
JPMorgan disclosed spot Bitcoin ETF investments in asset management giant BlackRock’s iShares Bitcoin Trust (IBIT), Bitwise Bitcoin ETF (BITB), Fidelity’s Wise Origin Bitcoin Fund (FBTC), and Grayscale Bitcoin Trust (GBTC). Majority of the disclosed amount of $731,246 was invested in IBIT – $477,425 worth of shares. The banking giant also purchased 25,021 shares worth roughly $47,000 in Bitcoin ATM provider– Bitcoin Depot Inc.
JPMorgan Chase is the largest banking institution in the US, managing roughly $2.6 trillion worth of assets. The bank along with Jane Street are the authorized participants (AP) of BlackRock and Valkyrie’s Bitcoin spot ETFs.
Meanwhile, Wells Fargo reported holdings worth $141,817 in Grayscale’s GBTC and under $1,200 in ProShare’s Bitcoin Strategy ETF (BITO) – which provides investors with exposure to BTC futures that bet on the future price of the crypto asset. The bank also has a $99 investment in Bitcoin Depot.
Back in February, it was reported that Wells Fargo with Bank of America’s Division was offering its wealth management clients exposure to Bitcoin ETFs via brokerage accounts.
The bank, which controls assets worth $603 billion under its asset management division, has long been considering investing in crypto assets and even piloted its own digital currency in 2019.
Earlier disclosures revealed that BNP Paribas and BNY Mellon also have invested certain amounts into Bitcoin spot ETFs, signaling a growing trend among traditional financial institutions.
Furthermore, major banking institutions like Morgan Stanley and UBS have expressed intent to allow their clients to invest in Bitcoin-backed funds through brokerage accounts. However, as of press time, both banks have yet to disclose their direct exposure to Bitcoin.
Bitcoin Spot ETFs Have Accumulated a Net Inflow of $11.76 Billion Since Their Launch
The SEC approved the listing and trading of 11 Bitcoin spot ETFs in January, and since then, the products have notched billions of dollars in inflows. The astounding success of the funds, fueled by ordinary investors getting the opportunity to buy shares that track the price of the leading cryptocurrency, led to Bitcoin hitting a new all-time high of $73,747 in March.
BlackRock, the world’s largest investment manager with an AUM of over $9 trillion, indicated that the trend of institutional inflows into Bitcoin ETFs is in its infancy with the volume expected to rise as more sophisticated money, like sovereign wealth funds, begins to enter the market.
The Wall Street heavyweight also disclosed a $6.6 million investment in its IBIT fund in a 13F filing made on May 10th. Ark Invest, the issuer of the ARK 21 Shares Bitcoin ETF (ARKB), reportedly purchased $206.4 million worth of shares in its fund, while Van Eck invested $98,000 in its VanEck Bitcoin Trust (HODL).
BlackRock’s IBIT is considered the best-performing of the lot. Since its launch, the fund has the highest cumulative inflows of any spot Bitcoin ETF at $15,490 and is the second-largest Bitcoin-backed investment fund in terms of assets under management (AUM), after Grayscale’s GBTC.
Chicago-based hedge fund CTC Alternative Strategies reported a $27.7 million investment in iShares Bitcoin Trust on Friday.
BlackRock and Fidelity’s Bitcoin ETFs are the Fastest Investment Funds to Reach $10 Billion AUM
IBIT and FBTC are so successful that they became the fastest ETFs to reach $10 billion in assets under management. BlackRock’s Bitcoin ETF achieved the milestone in 49 trading days, while it took 77 days for Fidelity’s fund.
As per data sourced by Fintel, over 240 companies have reported investments in IBIT, while over 130 firms have invested in FBTC. Grayscale’s GBTC has the highest number of institutional investors, with 467. However, the fund launched as a trust in 2013 was only converted into an ETF in January.
At the time of writing, Bitcoin (BTC) is trading at $60,873 – down 2.9% in the last 24 hours. The price of the world’s largest cryptocurrency by market capitalization has declined steadily since hitting record highs just two months ago.
