In an SEC filing, BNY Mellon disclosed that it owns shares of BlackRock and Grayscale Investments' Bitcoin spot ETFs.
Both Bitcoin spot funds, in which BNY Mellon has invested, were approved in January by the Securities and Exchange Commission (SEC) to be listed on US exchanges.
BNY Mellon is the oldest bank in the United States and the largest custodian bank in the world, so its participation in the Bitcoin market represents a milestone for the adoption of the cryptocurrency and its recognition as a legitimate investment asset.
ETFs accelerate institutional adoption of Bitcoin
13F filings with securities regulators, such as the one recently filed by BNY Mellon, have highlighted the huge appetite of financial institutions for Bitcoin.
While the custodian bank’s filing did not disclose exactly how much it holds in BlackRock’s iShares Bitcoin Trust (IBIT) spot ETF and Grayscale’s Grayscale Bitcoin Trust (GBTC) ETF, BNY Mellon noted that its total assets under management are worth $48,8 trillion, underscoring the role of ETFs as entry vehicles into the Bitcoin market for the world’s largest institutions.
Along with BNY Mellon, other major companies and corporations have reported their participation in Bitcoin spot ETFs in recent weeks, with BlackRock's IBIT being one of the cryptocurrency investment vehicles that has attracted the most attention and interest from institutional investors.
To date, this BTC ETF has accumulated over $17.000 billion, making it the most popular choice for investors, thanks to its attractive fees.
Source: Bitcoin Treasuries
BNY Mellon, Bitcoin and cryptocurrencies
BNY Mellon's interest in the world's leading cryptocurrency is not limited to US spot ETFs. In fact, over the past 4 years, the bank has shown a fervent interest in Bitcoin and its underlying technology. This led it to announce the creation of a multi-asset platform based on blockchain.
In 2022, the bank announced that the New York regulator had authorized it to offer cryptocurrency-related services, making it the first US bank to offer custody of crypto assets.
Earlier in 2021, BNY Mellon regretted not investing in shares of MicroStrategy, Michael Saylor's business intelligence company, which has reimagined the concept of investing in Bitcoin, adopting a bold strategy that has made it the largest institutional investor in the cryptocurrency today.
Continue reading: Bitcoin is now scarcer than gold
Main image from American Banker
