- Traditional banking giants Bank of America and Wells Fargo are offering eligible customers access to spot Bitcoin exchange-traded funds (ETFs).
- The increasing popularity of spot Bitcoin ETFs has led some investors to transition from gold-backed ETFs to Bitcoin.
- News about Bank of America and Wells Fargo’s attempt to offer access to spot Bitcoin ETFs to their customers was first revealed by Bloomberg Law.
According to recent reports, banking giants Bank of America and Wells Fargo may open their doors to spot Bitcoin ETFs in the United States!
BofA and Wells Fargo Opening Doors to Spot Bitcoin ETFs
Traditional banking giants Bank of America and Wells Fargo are offering eligible customers access to spot Bitcoin exchange-traded funds (ETFs). ETFs, according to a source familiar with Bank of America’s plans, have been offered to clients for several weeks, as reported by Reuters.
This move comes after the Securities and Exchange Commission (SEC) approved these investment instruments in January, marking a significant milestone in the acceptance of cryptocurrencies within the traditional financial system.
Spot Bitcoin ETFs provide exposure to the world’s largest cryptocurrency without requiring direct ownership. The increasing popularity of spot Bitcoin ETFs has led some investors to transition from gold-backed ETFs to Bitcoin.
Bitcoin, often referred to as “digital gold” due to its store of value properties, has seen positive sentiment reflected in market performance, especially as the leading cryptocurrency surpassed $64,000 for the first time in over two years.
News about Bank of America and Wells Fargo’s attempt to offer access to spot Bitcoin ETFs to their customers was first revealed by Bloomberg Law. However, the largest fund provider, Vanguard, stated that it currently has no plans to offer spot Bitcoin ETFs on its platform.
The entry of traditional banking institutions into the cryptocurrency market demonstrates the increasing adoption and recognition of digital assets. More recently, it was revealed that Morgan Stanley is considering adding spot Bitcoin ETFs to its brokerage platform and is currently in the preliminary research process.
Several platforms, including Fidelity, Charles Schwab, and Robinhood Markets, have started offering spot Bitcoin ETFs to customers shortly after the launch of these ETFs. Fidelity also offers its own spot Bitcoin ETF called the Fidelity Wise Origin Bitcoin Fund (FBTC).
UBS Group AG also optionally provides SEC-approved spot Bitcoin ETFs through brokerage accounts to a specific clientele.
Spot Bitcoin ETFs Witness Increased Trading Volume
Spot Bitcoin ETFs continue to attract investments from institutional investors. Spot Bitcoin ETFs in the United States saw a record daily trading volume of $7.7 billion, the highest in history.
The focus on BlackRock’s iShares Bitcoin Trust (IBIT) is particularly notable as this ETF surpassed nine other Bitcoin ETFs and ETFs in other asset classes. BlackRock’s IBIT doubled its personal record with a trading volume of $3.3 billion on its third consecutive day.
Fidelity’s spot Bitcoin ETF also doubled its previous record with a trading volume of $1.4 billion on the same day, according to Bloomberg analyst James Seyffart. Seyffart added, “$IBIT pulled in a record $612 million on its own. In net terms, the group pulled in $673 million. This exceeds the first-day record of $655 million. (still awaiting $BTCO).”
