The Bank of New York Mellon’s Significant Bitcoin ETF Holdings
The Bank of New York Mellon, commonly known as BNY Mellon, revealed holdings of more than $13 million in Bitcoin exchange-traded funds (ETFs) at the close of the fourth quarter. This move signifies a growing trend of traditional financial institutions increasing their exposure to digital assets.
BNY Mellon’s ETF Holdings Details:
- BNY Mellon owns 115,108 shares of WisdomTree Bitcoin Fund (BTCW), valued at approximately $11.87 million.
- BNY Mellon also possesses 25,309 shares of BlackRock’s iShares Bitcoin Trust (IBIT), with a worth of about $1.4 million.
Wall Street’s Acceptance of Bitcoin
BNY Mellon’s decision to hold Bitcoin ETFs aligns with a broader trend of major Wall Street banks cautiously stepping into the digital asset realm.
JPMorgan Chase holds nearly $1 million in Bitcoin ETF shares, while Goldman Sachs reported an exposure of over $2 billion in Bitcoin and Ethereum ETF holdings by the end of the fourth quarter.
The approval of spot Bitcoin ETFs by the SEC in early 2024 has paved the way for institutional and retail investors to access Bitcoin without direct custody of the asset. This milestone has been perceived as a significant moment for crypto adoption in traditional finance.
Despite the growing interest in ETF investments, regulatory barriers still hinder major banks from directly holding or trading cryptocurrencies.
Changing Regulatory Landscape
Regulators are gradually shifting their stance under the new US administration. Federal Reserve Chair Jerome Powell recently affirmed that the Fed will not impede banks from offering crypto services, as long as they manage associated risks.
Congress has advanced bipartisan legislation to establish clearer crypto regulations. Meanwhile, the SEC has paused several lawsuits against major crypto firms, signaling a shift towards a more supportive approach.
The Treasury has shown openness to stablecoin oversight, and lawmakers are pushing for regulatory clarity to prevent innovation from relocating offshore.
