Investments in Grayscale and BlackRock
The Bank of New York Mellon (BNY Mellon), the oldest bank in the US, has invested in Bitcoin Exchange Traded Funds (ETFs). According to SEC filings, BNY Mellon has purchased:
- 3 shares of Grayscale’s Bitcoin Trust (GBTC) for $166
- 7,105 shares of GBTC for $448,823
- 1 share of BlackRock’s IShares Bitcoin Trust (IBIT) for $50
- 17,123 shares of IBIT for $629,968
- 2,794 shares of IBIT for $113,073
Growing Trend in Traditional Finance
This move by BNY Mellon signals a growing trend of traditional financial institutions embracing cryptocurrencies. In October 2022, BNY Mellon introduced cryptocurrency custody services for institutional clients.
Popularity Among Wealth Managers
Recent 13F filings show that other major Wall Street firms and US banks are also purchasing spot Bitcoin ETFs. MacroScope, a crypto analyst, notes that these filings indicate popularity among wealth managers, particularly in the Midwest and Middle America. This suggests concerns about inflation and the US debt situation.
Specific Examples
Fielder Capital, a financial adviser in Tennessee, reported owning:
- 377,524 shares of the Bitwise Bitcoin ETF (BITB) for $14.6 million
- 130,756 shares of Grayscale’s BTC for $8.2 million
MacroScope believes that wealth managers are likely to hold these positions for the long term due to concerns about inflation.
