Major Financial Institutions Eyeing $27 Trillion AUM for Bitcoin and Crypto

Major Financial Institutions Eyeing $27 Trillion AUM for Bitcoin and Crypto

Several prominent U.S. financial institutions, collectively managing over $27 trillion in assets, are actively pursuing ways to provide their clients with exposure to Bitcoin and other cryptocurrencies.

CoinShares Chief Strategy Officer (CSO) Meltem Demirors highlighted that notable players in this field include BlackRock, Fidelity, JP Morgan, Morgan Stanley, Goldman Sachs, BNY Mellon, Invesco, and Bank of America.

Demirors emphasized that many of the largest financial institutions in the United States are actively working to grant access to Bitcoin and other cryptocurrencies. Collectively, these institutions manage an astonishing $27 trillion in assets.

 

BlackRock recently submitted an application for a Bitcoin exchange-traded fund (ETF) on June 16, leading to an increase in filings for similar products. This trend has fueled the belief that institutional investors will soon enter the Bitcoin market.

BlackRock’s ETF filing sparked a surge of positive sentiment in the cryptocurrency market, causing Bitcoin’s price to rally by 5,000 points in just seven trading days. On June 23, Bitcoin reached its highest price of the year at $31,479, according to TradingView data.

Demirors, however, noted that institutional involvement is more likely to happen gradually rather than abruptly. She emphasized that we are currently witnessing the ongoing connection-building between traditional financial institutions and the crypto space.

Additionally, it is important to highlight that the estimated $27 trillion figure represents the total assets under management of the eight institutions mentioned, and only a small fraction of this amount is expected to be allocated to crypto investments.

Nevertheless, it’s worth noting that Will Clemente, co-founder of Reflexivity Research, shares a similar viewpoint to Demirors. He emphasized that Bitcoin’s current market capitalization is still under $600 billion.

In his analysis, Clemente emphasized that “Between HSBC, Blackrock, Fidelity, and Schwab we are talking about $25 trillion in assets under management that will soon be enabled to buy Bitcoin.”

Regarding the growing interest from institutional investors, we can observe this trend in the ProShares Bitcoin Strategy ETF (BITO), which recently experienced its largest weekly inflow in a year. This surge in investor interest has pushed the fund’s assets under management (AUM) to surpass the $1 billion milestone.

Compiled by Coinbold