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Traditional Banking Titans Bank of America and Wells Fargo Look to Offer Bitcoin ETF Access

Traditional banking giants Bank of America and Wells Fargo are offering eligible wealth management clients access to spot Bitcoin exchange-traded funds (ETFs).

The ETFs have been available to clients for several weeks, a source familiar with Bank of America’s plans told Reuters

The move follows the Securities and Exchange Commission’s (SEC) approval of these investment vehicles in January, which marked a major milestone in the acceptance of cryptocurrencies within the traditional financial system.

Spot Bitcoin ETFs provide investors with exposure to the world’s largest cryptocurrency without requiring direct ownership. 

Spot Bitcoin ETFs Outshine Gold ETFs

The increasing popularity of spot Bitcoin ETFs has even prompted some investors to shift their holdings from gold-backed ETFs to Bitcoin

Bitcoin is often referred to as “digital gold” due to its store of value properties.

The positive sentiment has been reflected in recent market performance, with the leading cryptocurrency surpassing $64,000 for the first time in over two years.

Reports of Bank of America and Wells Fargo’s foray into offering spot Bitcoin ETFs to their clients were first brought to light by Bloomberg Law. 

Wells Fargo and Bank of America Merril are going to start pushing Bitcoin ETFs to their customers.

We are going to need more Bitcoin… oh wait, there isn’t anymore!

Fact: There is not even close to enough for the demand that is coming. Number will go up

— Lark Davis (@TheCryptoLark) February 29, 2024

However, Vanguard, the largest provider of mutual funds, has announced that it currently has no plans to make spot bitcoin ETFs available on its platform for brokerage clients.

The entry of traditional banking institutions into the cryptocurrency market demonstrates the growing mainstream 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 process of conducting due diligence.

Several platforms, including Fidelity, Charles Schwab, and Robinhood Markets, began offering spot bitcoin ETFs to clients shortly after they launched. 

Fidelity also offers its own spot bitcoin ETF, the Fidelity Wise Origin Bitcoin Fund (FBTC).

Furthermore, UBS Group AG is offering some SEC-approved spot Bitcoin ETFs to specific wealth management clients with brokerage accounts on an unsolicited basis.

Spot Bitcoin ETFs See Increased Trading Volume

Spot Bitcoin ETFs continue to attract investments from institutional investors. 

The US spot Bitcoin ETFs have seen $7.7 billion in daily trading volume, an all-time high. 

The spotlight on BlackRock’s iShares Bitcoin Trust (IBIT) is particularly noteworthy, as it outperformed nine other Bitcoin ETFs and ETFs of other asset classes.

BlackRock’s IBIT has doubled its personal record on the third consecutive day with $3.3 billion in trading volume.

Fidelity’s spot Bitcoin ETF also doubled its previous record with $1.4 billion trading volume on the same day, Bloomberg analyst James Seyffart posted on X.

“$IBIT took in a record $612 million on its own. On a net basis, the group took in $673 million. This beats the day 1 record of $655 million. (still waiting on $BTCO)” added Seyffart.

The post Traditional Banking Titans Bank of America and Wells Fargo Look to Offer Bitcoin ETF Access appeared first on Cryptonews.

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