Traditional banking behemoths Bank of America and Wells Fargo are now providing qualified wealth management clients with access to spot Bitcoin exchange-traded funds (ETFs).
According to a source acquainted with Bank of America’s strategies, the ETFs have been accessible to clients for several weeks, as reported by Reuters.
This development comes subsequent to the Securities and Exchange Commission’s (SEC) endorsement of these investment instruments in January, signaling a significant step forward in the integration of cryptocurrencies into the conventional financial framework.
Spot Bitcoin ETFs offer investors exposure to the leading cryptocurrency globally without necessitating direct ownership.
Spot Bitcoin ETFs Outshine Gold ETFs
The rising popularity of spot Bitcoin ETFs has led some investors to transition their holdings from gold-backed ETFs to Bitcoin. Often dubbed “digital gold,” Bitcoin is esteemed for its store of value attributes.
This upbeat sentiment has translated into recent market performance, with the premier cryptocurrency surpassing $64,000 for the first time in over two years.
Initial reports regarding Bank of America and Wells Fargo’s venture into offering spot Bitcoin ETFs to their clientele surfaced via Bloomberg Law.
Meanwhile, Vanguard, the foremost provider of mutual funds, has disclosed that it presently has no intentions to offer spot Bitcoin ETFs on its platform for brokerage clients.
The entrance of traditional banking institutions into the cryptocurrency market underscores the burgeoning mainstream acceptance and acknowledgment of digital assets.
Recent reports indicate that Morgan Stanley is contemplating the inclusion of spot Bitcoin ETFs on its brokerage platform and is presently engaged in conducting due diligence procedures.
Shortly after their launch, several platforms, including Fidelity, Charles Schwab, and Robinhood Markets, began providing spot Bitcoin ETFs to their clientele.
Fidelity, in particular, has introduced its own spot Bitcoin ETF, known as the Fidelity Wise Origin Bitcoin Fund (FBTC).
Moreover, UBS Group AG is extending certain SEC-approved spot Bitcoin ETFs to select wealth management clients with brokerage accounts on an unsolicited basis.
Spot Bitcoin ETFs See Increased Trading Volume
Institutional investors continue to flock towards spot Bitcoin ETFs, with the US offerings witnessing an unprecedented daily trading volume of $7.7 billion.
Of particular note is the spotlight on BlackRock’s iShares Bitcoin Trust (IBIT), which has surpassed nine other Bitcoin ETFs and ETFs across various asset classes in performance.
BlackRock’s IBIT achieved a remarkable feat by doubling its personal record for the third consecutive day, reaching $3.3 billion in trading volume.
Similarly, Fidelity’s spot Bitcoin ETF also achieved a significant milestone by doubling its previous record, boasting a trading volume of $1.4 billion on the same day, according to Bloomberg analyst James Seyffart.
Seyffart further noted, “$IBIT took in a record $612 million on its own. On a net basis, the group took in $673 million. This surpasses the day 1 record of $655 million. (still awaiting $BTCO).”
