U.S. giants JPMorgan and Wells Fargo have revealed their exposure to Bitcoin (BTC), the biggest cryptocurrency in the world, by announcing investments into Spot Bitcoin ETFs. The ongoing bear market in the cryptocurrency industry has caused the price of cryptocurrency to fall just beyond $60,000, which is a major milestone in and of itself.
In a recent filing, two American financial services corporations, Wells Fargo and JP Morgan, disclosed their exposure to Bitcoin (BTC) by revealing that they had adopted Spot Bitcoin ETFs. After previously being wary about cryptocurrencies, the banks have decided to participate in Cryptocurrency exchange-traded funds (ETFs).
A recent SEC filing disclosed that Wells Fargo has converted 2,245 shares of Grayscale Bitcoin Trust (GBTC) into an exchange-traded fund (ETF) with a value of $121,207. The firm previously held the shares in a different format. Another asset worth $1,195 is the American bank’s 37 shares in the ProShares Bitcoin Strategy ETF (BITO).
Conversely, in an SEC filing, JP Morgan disclosed its entire holdings in Spot BTC ETFs; the bank manages over $2.9 trillion in assets. Bitwise Bitcoin ETF, ProShares Bitcoin Strategy ETF, Grayscale Bitcoin Trust, iShares Bitcoin Trust (IBIT), and Fidelity’s Wise Origin Bitcoin Fund (FBTC) were among the Bitcoin ETFs that the bank bought shares in, totaling around $760,000.
In addition, Bitcoin Depot, a distributor of bitcoin ATMs, has 25,021 shares owned by JP Morgan, with a value of $47,000. A few hours subsequent to Wells Fargo’s declaration, the financial firm also disclosed its exposure to Spot Bitcoin ETFs.
There has been a meteoric rise in institutional interest in cryptocurrencies, and Bitcoin in particular, despite legal ambiguity and the market’s incessant volatility. According to Bloomberg senior analyst Eric Balchunas, more financial institutions will most likely reveal their holdings in Spot Bitcoin ETFs as market makers or Authorised Participants (APs), much like JP Morgan and Wells Fargo.
Traditional financial institutions are showing a growing interest in Bitcoin (BTC), but the price of the cryptocurrency has shown an unexpected lack of upward momentum. After the April 20 halving event, Bitcoin’s price has remained mostly stable, with steady drops taking it as low as $57,000.
The cryptocurrency’s price has fallen 14.20% in the last 30 days, after reaching a new all-time high of almost $73,000 in March. Furthermore, according to CoinMarketCap, Bitcoin is now trading at $60,494, having lost a significant amount of its gains prior to the halving.
According to Santiment, a blockchain analytics platform, the continued disinterest in Bitcoin and general market attitude may indicate that the cryptocurrency is nearing its bottom.
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