CRYPT — In the United States, major financial institutions that collectively manage assets worth $27 trillion are “actively” exploring ways to offer their clients exposure to cryptocurrencies like bitcoin and ethereum. On June 26, CoinShares Chief Strategy Officer Meltem Demirors drew attention to the fact that at least eight major financial institutions had reported actions in the digital asset space. Among these were BlackRock’s request for a spot Bitcoin ETF and Fidelity’s crypto wealth management solutions.
JP Morgan, Morgan Stanley, Goldman Sachs, BNY Mellon, Invesco and Bank of America are among the other major financial institutions. “Many of the largest financial institutions in the United States are actively working to provide access to Bitcoin and more,” she noted, adding that between them they oversee a staggering $27 trillion in assets. “Many of the largest financial institutions in the United States are actively working to provide access to Bitcoin and more,” she noted.
BlackRock’s June 16 filing for a spot Bitcoin exchange-traded fund sparked a rush to deposit similar products, supporting a narrative that suggests “institutions are coming” for Bitcoin. It happened earlier this month. According to CoinGecko, the price of bitcoin hit a new all-time high of $31,185 on June 24 amid growing investor optimism. Demirors, on the other hand, pointed out that while “institutions are coming,” it is more of a trickle than a wave at this point. “Bridge building is happening in real time,” she continued.
It is important to note that the $27 trillion figure is only an estimate of the total assets managed by the eight institutions, and only a tiny portion of those assets are likely to be invested in cryptocurrencies. . This fact should be kept in mind. Will Clemente, co-founder of Reflexivity Research, agreed with Demiror and pointed out that Bitcoin’s market valuation is below $600 billion. Demiror’s comments were supported by Clemente. Already, institutional investors are showing growing interest in bitcoin-linked funds. According to a report by Cointelegraph, the ProShares Bitcoin Strategy ETF (BITO) saw the largest weekly inflow it has seen in an entire year, bringing the total assets it manages to over $1 billion.