Major US banks show increased interest in Bitcoin ETFs

- Wall Street Banks Focus on Bitcoin ETFs in Q3 - Institutional Investors Increase Exposure to Bitcoin via 13F Filings [Unblock Media] Throughout the third quarter, asset management clients of Wall Street banks showed interest in trading Bitcoin. Major banks like Goldman Sachs, Bank of America, and Morgan Stanley have been gradually accumulating Bitcoin through Bitcoin spot exchange-traded funds (ETFs). Goldman Sachs reported holding approximately $710 million worth of Bitcoin ETF shares, nearly double the $418 million reported in the previous quarter. Most of Goldman Sachs' shares were concentrated in BlackRock's iShares Bitcoin Trust (IBIT), nearing 13 million shares. Other major banks such as Morgan Stanley, Cantor Fitzgerald, Royal Bank of Canada, Bank of America, UBS, and HSBC showed little change in their positions. However, Australia's Macquarie Group, a newcomer, purchased 132,355 shares of IBIT worth $4.8 million. Wells Fargo held minor stakes primarily in the Grayscale Bitcoin Trust (GBTC) and Grayscale Bitcoin Mini Trust (BTC). These positions are reflected in the 13F filings, which institutional investors with more than $100 million in assets under management are required to submit quarterly. The deadline for the Q3 13F form submission was Thursday. Bitcoin ETFs, which large banks like Goldman Sachs are focusing on, offer significant volatility and high return potential compared to traditional stocks or bonds. Nonetheless, risk management and regulatory issues remain crucial considerations. As of September 30, BlackRock disclosed ownership of 2.54 million shares worth $91.6 million in its fund. Between early July and the end of September, Bitcoin prices trended between $53,000 and $66,000, mostly flat or downward, reflecting investor caution. However, in Q4, Bitcoin prices surged following the U.S. presidential election. The re-election of crypto-friendly Donald Trump saw Bitcoin prices break multiple-month ranges, soaring past the March record of $73,700 to $93,400 this week. While Trump's re-election positively impacts the cryptocurrency market, institutional investors' strategic approaches and global economic conditions should also be considered. For instance, the possibility of the Federal Reserve holding interest rates steady could positively influence investor sentiment. These movements and expectations likely generate significant FOMO (fear of missing out) among institutional investors and their clients. Senior analyst James van Straten stated, "There will be considerable pressure to hold at least a 1% allocation due to the crypto-friendly President Donald Trump and rising Bitcoin." This 13F filing suggests that investment interest in cryptocurrency assets like Bitcoin could gain further traction in Q4.