- BNY Mellon holds over $13 million in Bitcoin ETFs showing growing interest from traditional banks in crypto.
- The bank owns shares in WisdomTree Bitcoin Fund and BlackRock iShares Bitcoin Trust as more institutions enter crypto.
- Regulatory barriers still limit banks from holding crypto but lawmakers are pushing for clear rules to support adoption.
The Bank of New York Mellon (BNY Mellon) disclosed over $13 million in Bitcoin exchange-traded funds in the fourth quarter. This move highlights the growing interest of traditional financial institutions in digital assets.
A filing with the U.S. Securities and Exchange Commission this week states that BNY Mellon holds 115,108 shares of WisdomTree Bitcoin Fund. The shares are worth around $11.87 million. Additionally, the bank holds 25,309 BlackRock’s iShares Bitcoin Trust shares worth about $1.4 million. That disclosure marks the cautious entry of big Wall Street banks into the cryptocurrency market.
Growing Institutional Interest in Bitcoin ETFs
Many financial institutions are growing their Bitcoin ETF portfolio investments. JPMorgan Chase currently owns at least $1 million worth of Bitcoin ETF shares. Goldman Sachs holds Bitcoin together with Ethereum ETFs with total assets valued above $2 billion.
The Securities and Exchange Commission approved spot Bitcoin exchange-traded funds during early 2024. The approval enables both institutional and retail investors to access Bitcoin exposure through an indirect manner. The approval helped bridge cryptocurrencies and traditional financial systems.
Regulatory Barriers and Future Outlook
Despite rising adoption through ETFs, regulatory barriers still restrict major banks from direct cryptocurrency ownership. Goldman Sachs and other firms provide advisory services on digital assets but face restrictions on direct involvement.
Federal Reserve Chair Jerome Powell recently acknowledged that many banks under the Federal Reserve already offer crypto services. However, he warned against excessive exposure to digital assets.
Legislators in Congress have built bipartisan consensus around laws that bring more structure to digital asset regulations. The SEC has halted multiple enforcement proceedings targeting leading crypto businesses. Regulatory clarity remains a top priority for lawmakers who aim to stop innovation from relocating abroad.
The Treasury has expressed its willingness to oversee stablecoins. The regulatory changes indicate that government agencies are adapting their stance toward digital assets. The growth of Bitcoin ETFs depends heavily on established regulatory guidelines for full institutional reliability.
