JP Morgan and Wells Fargo, two of the largest banks in the United States, announced their investments in Spot Bitcoin ETFs, revealing their exposure to BTC, the world's largest cryptocurrency. This significant development comes amid a continued slowdown in the crypto market, resulting in BTC Price Drop slightly above $60,000.
US Financial Banks Expose Their Bitcoin ETF Holdings to Spot
American financial services companies, Wells Fargo and JP Morgan, revealed their exposure to BTC by revealing their adoption of Spot Bitcoin ETFs in a recent report. deposit. This move to invest in BTC ETFs marks a notable shift from banks' previous cautious approach to cryptocurrencies.
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Wells Fargo revealed in its new deposit to the United States Securities and Exchange Commission (SEC) that it currently holds 2,245 shares of Grayscale Bitcoin Trust (GBTC)valued at $121,207, which he has since converted to an ETF. Additionally, the American bank owns 37 shares of the ProShares Bitcoin Strategy ETF (BITO), valued at $1,195.
On the other hand, J.P. Morganwhich is holding approximately $2.9 trillion in assets under management (AUM), revealed its total Spot BTC ETF holdings in an SEC filing. The bank said it purchased about $760,000 worth of shares of BlackRock iShares Bitcoin Trust (IBIT)Fidelity's Wise Origin Bitcoin Fund (FBTC), Grayscale Bitcoin Trust (GBTC), Bitwise Bitcoin ETF, and ProShares Bitcoin Strategy ETF (BITO).
Additionally, JP Morgan also owns around 25,021 shares valued at $47,000 in the cryptocurrency ATM provider, Bitcoin Deposit. The investment firm also revealed its exposure to Spot BTC ETFs just hours after Wells Fargo's announcement.
Despite the regulatory uncertainty and due to continued market volatility, institutional interest in cryptocurrencies, particularly BTC, has increased rapidly. Bloomberg Senior Analyst Eric Balchunas foreseen that more financial services companies would likely follow in the footsteps of JP Morgan and Wells Fargo in revealing their stakes in Spotting Bitcoin ETFs as market makers or authorized participants (APs).
BTC price suffers further declines
Despite growing interest from traditional financial institutions seeking exposure to BTC, the cryptocurrency price showed a surprising lack of bullish momentum. Since his halving event on April 20, BTC trades sideways, testifying continued declines which brought its price down to around $57,000 previously.
The cryptocurrency, which recorded an all-time high above $73,000 in March, has seen a 14.20% decline over the past month. Additionally, Bitcoin has given up much of its pre-halving gains and is currently trading at $60,494, according to CoinMarketCap.
Blockchain analysis platform, Santiment, revealed that the current lack of interest in BTC and broader market sentiments could be a strong sign that the cryptocurrency is get closer to its bottom.
BTC price falls below $61,000 | Source: BTCUSD on Tradingview.com
Featured image of PlasBit, chart from Tradingview.com