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JPMorgan and Wells Fargo Buy Over $880K in Bitcoin ETFs as BTC Drops Below $60,000

Last Updated May 13, 2024 8:54 AM
Teuta Franjkovic
Last Updated May 13, 2024 8:54 AM
By Teuta Franjkovic
Verified by Peter Henn

Key Takeaways

  • US banks JPMorgan and Wells Fargo have invested in spot Bitcoin ETFs.
  • This move comes during a downturn in the crypto market, with Bitcoin’s price remaining stagnant around $60,000.
  • Market analysis suggests Bitcoin may be nearing its bottom, indicating a potential turning point for investors.

JPMorgan and Wells Fargo, two of the largest banks in the United States, have disclosed their investments  in spot Bitcoin ETFs. This marks their marking their entry into direct exposure to the world’s largest cryptocurrency.

This move comes during a prolonged downturn in the cryptocurrency market, which has seen the price of Bitcoin hover slightly above $60,000.

Wells Fargo and JPM Embrace Bitcoin, Signaling Crypto Strategy Shift

American financial giants Wells Fargo and JPMorgan’s move into Bitcoin investments is a significant shift from their traditionally cautious stance on cryptocurrencies.

According to new filing  with the United States Securities and Exchange Commission (SEC), Wells Fargo holds 2,245 shares of the Grayscale Bitcoin Trust (GBTC), worth $121,207.

Additionally, Wells Fargo holds 37 shares of the ProShares Bitcoin Strategy ETF (BITO), worth $1,195.

JPM Bitcoin ETF Investment Signals Growing Institutional Acceptance

JPMorgan, one of the largest asset managers globally with around $2.9 trillion under management , purchased around $760,000 worth of shares across several funds. These include:

Additionally, JPMorgan has invested in about 25,021 shares, valued at $47,000, in Bitcoin Depot, a provider of cryptocurrency ATMs. This move was announced shortly after a similar disclosure by Wells Fargo.

The institutional interest in cryptocurrencies, particularly Bitcoin, comes despite ongoing regulatory uncertainty and market volatility. Eric Balchunas, a senior analyst at Bloomberg, suggests  that the actions of JPMorgan and Wells Fargo may lead other financial services companies to reveal their roles as market makers or Authorized Participants (APs) in Spot Bitcoin ETFs.

Bitcoin Price Stalls Despite Institutional Adoption, Nearing Bottom?

Despite increasing engagement from traditional financial institutions in Bitcoin (BTC), the cryptocurrency’s price has not been so bullish. Following its halving on April 20, Bitcoin has been experiencing a stagnant trading pattern, marked by declines that drove its price down to around $57,000.

Previously reaching an all-time high of over $73,000 in March, Bitcoin has undergone a 14.20% decline  over the past month. It has surrendered a significant portion of its gains prior to the halving and is currently trading at $60,494.

Blockchain analytics platform Santiment, pointed out  the diminished interest in BTC, coupled with the prevailing market sentiments, may indicate that the cryptocurrency was nearing its bottom.

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