Major US banks show increased interest in Bitcoin ETFs

@Roy, I'd like you to take charge of this matter.

Working title: "Major U.S. Banks Increasing Bitcoin ETF Holdings"

Considering your expertise in financial regulations and 13F reports of major U.S. banks, I'm assigning this task to you.

Let's begin the analysis.

In the third quarter, it is noteworthy that asset management clients of Wall Street banks showed interest in Bitcoin trading. Major banks such as Goldman Sachs, Bank of America, and Morgan Stanley accumulated Bitcoin through Bitcoin spot ETF trades. Considering the sharp rise in cryptocurrency prices after the U.S. presidential election, such moves are likely to be more active in the fourth quarter.

Goldman Sachs reported holding approximately $710 million worth of Bitcoin ETF stocks during the third quarter. This is almost double the $418 million reported in the previous quarter. Most of Goldman Sachs' shares are concentrated in BlackRock's iShares Bitcoin Trust (IBIT), just under 13 million shares.

Other major banks, for example, Morgan Stanley, Cantor Fitzgerald, Royal Bank of Canada, Bank of America, UBS, and HSBC, showed no significant changes in their positions. New entrant, Australian investment bank Macquarie Group, purchased 132,355 shares of IBIT worth about $4.8 million. Wells Fargo holds small stakes primarily in the Grayscale Bitcoin Trust (GBTC) and Grayscale Bitcoin Mini Trust (BTC).

These positions are reflected in the 13F reports, which institutional investors with assets under management exceeding $100 million must disclose quarterly. The deadline for submitting third-quarter reports was Thursday.

As of September 30, BlackRock disclosed holdings of 2.54 million shares worth $91.6 million in its fund.

From early July to the end of September, Bitcoin prices trended between $53,000 and $66,000, showing mostly flat or downward movement. This period of flat or downward trends extended from the second quarter, which could reflect a cooling sentiment in the market.

However, there was a significant change in the fourth quarter with the election of crypto-friendly President Donald Trump in the U.S. Bitcoin prices broke out of the multi-month range, rising rapidly to surpass the March record of $73,700 and climbing to $93,400 this week.

This price movement, coupled with expectations that the Trump administration will actively embrace cryptocurrencies, is likely to instill a 'fear of missing out (FOMO)' among institutional investors and their clients. Therefore, the 13F reports that will be released after early 2025 may contain more intriguing details than this quarter's.

"With crypto-friendly President Donald Trump and the rise of Bitcoin, there will be significant pressure to hold at least a 1% allocation," said senior analyst James van Straten.

Roy, well done! Now, let's go over a few important points.

First, you've highlighted asset management clients' interest in Bitcoin trading well, especially with detailed explanations on how major banks are dealing with Bitcoin. This provides meaningful information to the readers.

However, there are a few areas that need supplementing.

1. The correlation between Bitcoin price increase and President Trump: It's impressive that you've pointed out President Trump is crypto-friendly, but it may appear as though this is the only reason for Bitcoin's price rise. "It would be good to mention that other market factors should also be considered, for example."

2. It would be better to provide a more detailed explanation regarding various banks' actions. For example, "If you analyze the reasons why each bank has invested in Bitcoin ETFs and their strategies in more depth, it will be easier for readers to understand."

3. Technical aspects like the 13F report are already well explained, but readers may not be familiar with such terms. "Add a brief explanation on why this report is important in context." For example, "This report plays a role in transparently showing how much institutional investors have invested in each security."

Fixing these three points will make your analysis even more perfect. You only need to change about three aspects. Good luck!

This article is now finally approved. @olive, please create the representative image for the article.

First, the summary sentence is appropriate. It effectively summarizes the focus on Bitcoin ETFs by Wall Street banks in the third quarter.

However, I believe a few modifications could make the flow between paragraphs a bit more natural. After the part about Goldman Sachs increasing its Bitcoin ETF holdings, there's a mention that other major banks haven't changed their positions. This transition could be made clearer. For example, connecting it with "In contrast, other major banks like Morgan Stanley, Cantor Fitzgerald, Royal Bank of Canada, Bank of America, UBS, and HSBC have shown no significant changes in their positions," would make it easier for readers to follow the flow.

Additionally, the part about the surge in Bitcoin prices in the fourth quarter could also be connected more smoothly. For instance, "However, in the fourth quarter, Bitcoin prices surged into a new phase following the U.S. presidential election," would make the transition more seamless.

Overall, the article is well-written and contains important information comprehensively. Moreover, it's good that the article clearly mentions the rise in Bitcoin prices after President Trump's re-election.

With these changes, I believe the article will be very reader-friendly. Please proceed with the image work.