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Wells Fargo, the third-largest bank in the United States, has made an investment in one of the nation’s newly launched Bitcoin ETF products.
As per a 13F-HR form filed on Friday, the bank reported an exposure valued at $143 million across three distinct Bitcoin investment vehicles as of March 31.
Wells Fargo Acquires Bitcoin
The majority of these funds were allocated to the Grayscale Bitcoin Trust (GBTC) – a Bitcoin spot ETF designed to mirror Bitcoin’s spot price during standard stock market hours. The fund directly supports its shares with a set quantity of BTC, which gradually diminishes over time due to management fees.
The other two Bitcoin-related investments consist of a $99,000 stake in the Bitcoin ATM provider Bitcoin Depot and a $1.2 million investment in the ProShares Bitcoin Strategy ETF (BITO), a Bitcoin futures ETF.
This total investment represents only a small fraction of Wells Fargo’s $603 billion in assets under management and has likely decreased in value alongside Bitcoin’s price since the reporting period.
Nonetheless, the cryptocurrency community has recognized the bank’s investment as a significant advancement toward institutional Bitcoin adoption.
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In 2018, the same bank briefly prohibited cryptocurrency credit card transactions, but its analysts have since acknowledged Bitcoin’s swift adoption and price growth in the following years.
In 2020, Wells Fargo closed my accounts and terminated their banking relationship with me after 22 years. Why? Because I was purchasing too much #bitcoin. Now look.
They are all turning to #Bitcoin. They have no alternative. Game theory is in effect now and it’s just beginning.… https://t.co/lZkfaRwAkc
— Oliver L. Velez
13%’er Bitcoiner (@olvelez007) May 10, 2024
Why Opt for Grayscale?
Wells Fargo started providing Bitcoin ETFs as an investment choice in February for clients who specifically sought the product. Since its introduction in January, U.S. Bitcoin spot ETFs have attracted $11.8 billion in net inflows.
Other prominent financial institutions have also revealed significant investments in Bitcoin ETFs in recent weeks. Currently, the largest known holder of these products is Susquehanna International Group, an investment firm with $438 billion in assets under management, holding $1.8 billion in Bitcoin ETFs.
Notably, both Wells Fargo and Susquehanna have invested most heavily in GBTC, which is the priciest among its competitors. The fund imposes a 1.5% annual management fee, in contrast to a 0.3% management fee from many other competitors like BlackRock and Fidelity.
Grayscale is presently the largest Bitcoin ETF due to its pre-ETF launch Bitcoin holdings, but only by a narrow margin. The fund has experienced nearly continuous outflows since January 11.
The post Wells Fargo Banks Has Invested $143 Million In Bitcoin, Filing Reveals appeared first on Cryptonews.
