When traditional financial giants enter the Bitcoin ETF, will the price of Bitcoin soar?

JP Morgan (JP Morgan) and Wells Fargo (Wells Fargo) are major global banks that recently disclosed Bitcoin exposure through a spot BTC exchange-traded fund launched in January.

The two lenders filed 13F disclosure documents on May 10, disclosing modest investments in Bitcoin ETFs.

Wells Fargo, the third-largest bank by assets in the US, recently announced that it has begun investing in Bitcoin spot exchange-traded funds (ETFs). According to recent foreign media reports, in the 13F filing submitted by the US Securities and Exchange Commission (SEC), the bank disclosed its investment in Grayscale Bitcoin Trust (GBTC), a fund converted into a Bitcoin spot ETF in January 2024.

As a spot Bitcoin ETF, GBTC invests mainly in Bitcoin and seeks to reflect the actual value of its Bitcoin holdings. According to the latest data, Wells Fargo's current investment in GBTC amounts to $141,817. The move shows Wells Fargo is gradually increasing its investment in the cryptocurrency sector, particularly in the asset class Bitcoin.

In addition to investing in GBTC, Wells Fargo also invested in Bitcoin Depot, a Bitcoin automatic teller machine (ATM) provider that allows users to directly exchange cash for Bitcoin. This type of investment shows Wells Fargo's interest in providing crypto-related services and its optimism about the potential of cryptocurrencies as a means of payment and investment in the future.

Additionally, Wells Fargo has invested in the ProShares Bitcoin Strategy ETF (BITO), a fund that invests in Bitcoin futures rather than directly investing in Bitcoin. This diversified investment strategy not only shows Wells Fargo's confidence in the long-term value of Bitcoin, but also shows its cautious approach in risk management to diversify potential market risks through different types of investment tools.

As of April 2024, Wells Fargo's total assets have reached $1.73 trillion, making it one of the world's largest financial institutions due to its huge asset size and broad market influence. Wells Fargo's series of actions not only strengthens its position in traditional financial markets, but also indicates that the bank may play a more important role in the global cryptocurrency market.

According to a filing with the SEC, J.P. Morgan Chase, the largest financial institution in the US, has a Bitcoin spot ETF worth around $1 million, the news shocked the financial community.

The move was seen as a major shift in the bank's strategy in the digital currency market, particularly in the context of previous skepticism of bank executives about cryptocurrencies. This development not only reveals J.P. Morgan's recognition of Bitcoin's potential value, but also reflects the wider financial market's growing acceptance of cryptocurrencies.

J.P. Morgan reports that it holds approximately $760,000 worth of shares such as ProShares Bitcoin Strategy ETF (BITO), BlackRock's iShares Bitcoin Trust (IBIT), and Fidelity's Wise Origin Bitcoin Fund (IBIT). FBTC, Grayscale Bitcoin Trust (GBTC), and Bitwise Bitcoin ETF. Additionally, the bank reported 25,021 shares of crypto ATM provider Bitcoin Depot worth around $47,000.

I can only say that the appeal of Bitcoin made J.P. Morgan Chase, which had previously been viewed with skepticism, call out: “Bitcoin is so fragrant!”

And J.P. Morgan's shift from doubt to acceptance not only shows the maturity of the cryptocurrency market, but also reflects the gradual recognition of emerging asset classes in global financial markets. For investors and market analysts, this is an important sign to watch for, showing that cryptocurrencies still have the potential to attract mainstream capital even in the midst of volatility and uncertainty.

Not only that, but BNP Paribas and BNY Mellon have also invested heavily in Bitcoin ETFs. This shows that, despite low risk exposure, investment trends in traditional financial institutions are still growing.

Additionally, other major banks, including Morgan Stanley and UBS, have indicated their intention to allow customers to invest in spot Bitcoin ETFs.

This series of developments revealed the fact that even in the face of internal skepticism and external criticism, J.P. Morgan Chase and other mainstream financial institutions are gradually beginning to accept cryptocurrencies as an investment tool.

Although 4 months have passed since the Bitcoin spot ETF, its impact is far from over, and many institutional investors continue to buy Bitcoin spot ETFs. Of course, the current volume of purchases is not enough to cause an instant explosion in the market, but as more institutions enter the market to buy, sooner or later there will be a moment when the tide rises.

As of press release, the price of Bitcoin is around $65,000.

The advent of Bitcoin spot ETFs has provided investors with a more convenient way to invest in Bitcoin, which is especially important for those already familiar with traditional stock markets. It's much simpler to buy a Bitcoin spot ETF directly through the stock market compared to buying Bitcoin directly on a cryptocurrency exchange. Bitcoin spot ETF may seem a bit complicated, but it's very simple to trade, just like trading US stocks: open a US stock account, enter a code to find the corresponding variety, buy, and confirm. Note that although they are all Bitcoin spot ETFs, different issuers charge different fees. Currently, 11 Bitcoin spot ETFs approved by the US SEC charge between 0.2%-1.5%.

Of course, investors can also use BiyaPay, an online multi-asset trading tool that can be used to buy Bitcoin spot ETFs with a simple and convenient one-click transfer. Investors can directly deposit fiat currencies such as USD or digital currencies such as USDT, and then buy spot ETFs with one click. Investors don't need to use a new exchange, create a new trading account, or learn how to use a digital wallet, making it easy for even ordinary investors who don't know much about cryptocurrencies to participate.

Major US financial institutions are entering the cryptocurrency world, which marks a major shift in the financial landscape. As interest in Bitcoin (BTC) and other cryptocurrencies surges around the world, major US financial giants with total assets worth over $27 trillion are actively satisfying customers' wishes to join the digital gold rush.

These bold moves by financial giants reflect a growing consensus that cryptocurrencies are here to stay. As institutional interest reaches new heights, it is becoming increasingly clear that digital assets have evolved from speculative experiments to legitimate options for long-term investment strategies.

Bitwise Chief Investment Officer Matt Hougan has stated that institutions are expected to inject more than $1 trillion into Bitcoin over the next year through ETFs.

As we can see, with more and more well-known institutions entering the market, the real bull market may only now begin.