Financial Giants with $27 Trillion in Assets Actively Pursuing Crypto Investments, Reveals CoinShares’ CSO
Prominent financial institutions in the United States, collectively managing a staggering $27 trillion in assets, are actively exploring ways to offer their clients exposure to cryptocurrencies such as Bitcoin (BTC). CoinShares’ Chief Strategy Officer, Meltem Demirors, highlighted the moves made by at least eight major institutions in the digital asset space. Notable mentions include BlackRock’s application for a spot Bitcoin exchange-traded fund and Fidelity’s solutions for managing crypto wealth.
Among the other institutions venturing into cryptocurrencies are JP Morgan, Morgan Stanley, Goldman Sachs, BNY Mellon, Invesco, and Bank of America. Demirors emphasized the significant amount of assets under management held by these institutions, emphasizing the colossal $27 trillion figure.
While recent developments, such as BlackRock’s Bitcoin ETF application, have sparked optimism and fueled the narrative of institutional interest in Bitcoin, Demirors cautioned that the influx is more of a gradual progression rather than an overwhelming surge. She emphasized the ongoing process of establishing the necessary infrastructure to facilitate institutional involvement in the crypto space.
It is important to note that the $27 trillion estimate represents the combined assets under management of the eight institutions and only a fraction of this capital is likely to be allocated to crypto investments.
However, Will Clemente, co-founder of Reflexivity Research, echoed Demirors’ sentiment by highlighting the potential impact of the institutions entering the space. With financial giants such as HSBC, BlackRock, Fidelity, and Schwab having a collective $25 trillion in assets under management, Clemente noted the significant potential for increased Bitcoin adoption.
Institutional investors are already displaying heightened interest in Bitcoin-related funds, as evidenced by the ProShares Bitcoin Strategy ETF (BITO) experiencing its largest weekly inflow in a year, pushing its assets under management above $1 billion.
Meanwhile, Michelle Bowman, a member of the Federal Reserve Board of Governors, recently criticized the lack of regulatory framework for cryptocurrencies. Bowman stressed the need for clarity and regulatory oversight to avoid leaving institutions trapped in a “supervisory void” when dealing with crypto assets.