The leading eight financial entities exhibiting curiosity in Bitcoin and crypto are responsible for an astounding $27 trillion in collective assets under management.
Major American financial institutions, responsible for managing $27 trillion in assets, are actively exploring opportunities to offer their clients exposure to Bitcoin BTC, priced at $30,508, and other cryptocurrencies.
On June 26, Meltem Demirors, Chief Strategy Officer at CoinShares, pointed out that at least eight notable financial institutions had expressed interest in the digital asset sector. This includes BlackRock’s Bitcoin spot ETF filing and Fidelity’s crypto wealth management solutions.
Other key players are JP Morgan, Morgan Stanley, Goldman Sachs, BNY Mellon, Invesco, and Bank of America.
“Several of the most significant financial institutions in the US are diligently striving to provide access to Bitcoin and beyond,” she stated, highlighting that a colossal $27 trillion in assets is being managed between them.
Earlier in the month, the filing of BlackRock’s spot Bitcoin exchange-traded fund application on June 16 sparked a flurry of similar applications. This reinforced the narrative of “institutions are coming” for Bitcoin.
Bitcoin’s price hit a 2023 peak of $31,185 on June 24, amid soaring optimism, as per CoinGecko.
However, Demirors cautioned that while “the institutions are coming,” the influx is still more of a dribble than a deluge. “We’re witnessing the construction of bridges in real-time,” she added.
It’s important to clarify that the $27 trillion estimate encompasses total assets under management across these eight institutions, and only an insignificantly small fraction would probably be dedicated to crypto investments.
Nonetheless, Reflexivity Research co-founder Will Clemente echoed Demirors’ sentiments, drawing attention to Bitcoin’s market capitalization being under $600 billion.
“With HSBC, Blackrock, Fidelity, and Schwab, we’re talking about $25 trillion in assets under management that will soon be enabled to buy Bitcoin.”
Institutional investors are already demonstrating increased interest in Bitcoin-related funds. The ProShares Bitcoin Strategy ETF (BITO) recorded its highest weekly inflow in a year, pushing its assets under management to over $1 billion, as reported by Cointelegraph.
Earlier this week, Michelle Bowman, a member of the Federal Reserve Board of Governors, criticized the lack of a regulatory framework for crypto. She argued that the uncertainty surrounding the asset class leaves institutions in a “supervisory void.”