Wall Street Banks Increasingly Acquire Spot Bitcoin ETFs, Fueling Speculation of $100,000 Rally
Several major Wall Street banks in the United States, with a total combined Assets Under Management (AUM) of approximately $469 billion, have been purchasing Bitcoin through BlackRock’s spot Bitcoin Exchange-Traded Fund (ETF), according to a recent filing from the US Securities and Exchange Commission (SEC). This growing interest from institutions has not only boosted confidence in Bitcoin but has also sparked speculation about the possibility of the cryptocurrency reaching $100,000 in value.
Julian Fahrer, CEO of the Bitcoin-centric app Apollo Sats, shared this development on the X platform, stating, “BREAKING: 13F SEC Filings show US Banks are buying Bitcoin.” He specifically highlighted American National Bank’s involvement in Ark’s ETF, describing it as “significant for breaking the seal on banks buying ETFs.” Fahrer also mentioned that, in addition to banks, various Wall Street corporations including investment managers and family offices with AUM ranging from $200 million to $10 billion have also invested in Bitcoin through ETFs.
One notable buyer is Park Avenue Securities LLC, with an AUM of $9.9 billion, which purchased 7,328 shares of the Grayscale Bitcoin Trust (GBTC) for $457,780. In total, Wall Street firms with a combined AUM of $15 billion acquired exposure to Bitcoin ETFs worth approximately $4 million in the first quarter.
Matt Hougan, Chief Investment Officer at Bitwise, spoke about institutional investors’ Bitcoin purchases on the X platform and highlighted May 15 as an important date to watch. “Investors with more than $100m in AUM have to file reports with the SEC called ’13-F Filings’ disclosing their publicly traded holdings. Those filings are due 45 days after the end of the calendar quarter,” explained Hougan. While these filings provide a snapshot of holdings, Hougan believes that some of the names will surprise people.
BlackRock’s spot Bitcoin ETF, the iShares Bitcoin Trust (IBIT), is currently competing closely with GBTC in terms of AUM, with a difference of only 50,000 BTC between them. IBIT currently holds 266,587 BTC worth approximately $18.79 billion, while GBTC has 315,941 BTC worth around $22.27 billion, as revealed in a recent video from Crypto News Flash. This intense competition between IBIT and GBTC is driven by the disparity in the flows of the two ETFs. While GBTC has experienced outflows since its launch in January, IBIT has seen significant inflows. Reports suggest that IBIT accumulates an average of 20,120 BTC weekly, while GBTC witnesses an average weekly sell-off of 22,620 BTC. If these trends continue, BlackRock could potentially surpass Grayscale as the leading Bitcoin ETF in the United States.
Currently, Bitcoin is trading at $67,554, showing a 4.68% decrease in the past day, with a market capitalization of $1.3 trillion. However, trading volume has increased by 61.8% to $47.9 billion, indicating potential buying interest. While it remains uncertain whether Bitcoin will reach the $100,000 mark in the near future, the significant increase in trading volume suggests a bullish trajectory for the leading cryptocurrency.