The Bank of New York Mellon Corporation (BNY Mellon), the oldest and one of the largest banks in the United States, has disclosed its investments in Bitcoin Exchange Traded Funds (ETFs). According to its recent Securities and Exchange Commission (SEC) filings, BNY Mellon has acquired stakes in spot BTC ETFs managed by BlackRock and Grayscale.
BNY Mellon Bought Bitcoin ETFs Worth $1.2 Million
Julian Fahrer, co-founder and CEO of Apollo, highlighted the significance of this move on the social media platform X, formerly known as Twitter: “JUST IN: $49T bank BNY Mellon reports exposure to multiple Bitcoin ETFs in SEC filings! BNY is America’s oldest US bank.”
JUST IN: 🗽 $49T bank BNY Mellon reports exposure to multiple #Bitcoin ETFs in SEC filings!
BNY is America’s oldest bank 🇺🇸🫡
— Julian Fahrer (@Julian__Fahrer) April 25, 2024
The investment details, as per the SEC filing, include small but symbolic purchases. BNY Mellon’s engagement with Grayscale involved purchasing 3 shares of Grayscale’s Bitcoin Trust (GBTC) for $166 and another 7,105 shares for $448,823. In terms of BlackRock’s IShares Bitcoin Trust (IBIT), the bank made initial minimal purchases, acquiring one share for $50, followed by 17,123 shares costing $629,968 and 2,794 shares valued at $113,073.
Oliver L. Velez, a noted book author and professional trader, contextualized BNY Mellon’s financial clout in the digital asset space: “NY Mellon is the largest custodian of wealth on planet Earth. If you think Black Rock having $10 trillion under management is big, try BNY Mellon’s $49 trillion. #stackharder”
This strategic move by BNY Mellon underlines a broader trend of traditional financial institutions warming up to cryptocurrencies. In October 2022, BNY Mellon had already expanded its service portfolio by introducing cryptocurrency custody services for select institutional clients, signaling its commitment to integrating digital assets alongside traditional assets.
Bitcoin ETFs Gain Popularity Among Conservative Wealth Managers
The development coincides with revelations from other 13F filings just two weeks ago. As Bitcoinist reported, several major Wall Street firms and US banks have started purchasing spot Bitcoin ETFs.
Crypto analyst MacroScope (@MacroScope17) remarked on the diversity and implications of these filings. He analyzed recent 13F filings and suggested that these documents would reveal larger spot Bitcoin ETF positions as the mid-May deadline approaches.
MacroScope noted, “So far, the filings indicate popularity with wealth managers. Many of the wealth managers reporting ownership of the Bitcoin ETFs are located in the Midwest/Middle America, which generally has a more conservative mindset, and their ownership of the ETFs could indicate long-term concern about inflation and the US debt situation.”
In my previous tweet about the Bitcoin ETFs, I said this about the current 13F filings:
1. They will show larger position sizes as we approach the mid-May deadline.
2. So far, the filings indicate popularity with wealth managers.
3. Many of the wealth managers reporting…
— MacroScope (@MacroScope17) April 26, 2024
Highlighting specific examples from the filings, MacroScope mentioned Fielder Capital, a financial adviser in Tennessee, which reported owning 377,524 shares of the Bitwise Bitcoin ETF (BITB) valued at $14.6 million—making it the third-largest position in their portfolio. Fielder Capital also holds 130,756 shares of Grayscale’s BTC worth $8.2 million, totaling $223.7 million in reported portfolio positions.
MacroScope’s commentary suggests a robust and growing interest in spot Bitcoin ETFs among regional wealth managers, potentially driven by macroeconomic concerns and a strategy to hedge against inflation.
“We have a wealth manager, Middle America, large position size. And in terms of concern about inflation and US debt, watch the below video on the firm’s website from September 2023. I’ve said wealth managers are sticky money. Does it sound like they’ll be selling anytime soon? Expect a lot of 13F filings like this in coming quarters,” he concluded.
At press time, BTC traded at $64,332.
Featured image created with DALL·E, chart from TradingView.com
