Major U.S. Banks Disclose Growing Bitcoin Investments Through ETFs

JP Morgan and Wells Fargo have recently reported investments in Bitcoin via ETFs, highlighting the cryptocurrency's growing acceptance among traditional banks. These investments were detailed in their 13F filings on May 10, signaling a continued trend among major banks integrating Bitcoin into their portfolios.

JP Morgan's investment totaled $731,246 spread across several Bitcoin ETFs, with the largest sum, $477,425, in BlackRock’s IBIT. Wells Fargo invested $141,817 in Grayscale’s GBTC. Earlier filings also show similar investments from other traditional banks like BNP Paribas and BNY Mellon, suggesting a wider industry trend.

Institutional interest in Bitcoin is on the rise, according to BlackRock’s digital assets head. The surge in institutional investments into Bitcoin ETFs is just beginning and is expected to grow as more complex investors, including sovereign wealth funds, start engaging.

BlackRock itself has invested $6.6 million in its IBIT fund, demonstrating issuers' confidence in their products. This trend is echoed by other fund issuers like Ark Invest and Van Eck, who have also made significant investments in their respective Bitcoin ETFs. BlackRock’s IBIT notably reached $10 billion in assets under management in just 49 days, setting a new industry record.

The engagement of traditional financial institutions with Bitcoin is expanding. For instance, CTC Alternative Strategies invested $27.7 million in IBIT. Other firms like Hightower Advisors, US Bancorp, and SouthState have also disclosed investments in various Bitcoin ETFs.

This ongoing integration of Bitcoin into traditional investment portfolios indicates a shift in how financial institutions view digital currencies, moving them closer to mainstream acceptance. This trend is supported by data from Fintel, which shows that over 240 firms have invested in IBIT, more than 130 in FBTC, and 467 in Grayscale’s GBTC.