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US Mega Banks JP Morgan And Wells Fargo Unveil Bitcoin Exposure As BTC Drops To $60,000

JP Morgan and Wells Fargo, two of the largest banks in the United States, have recently disclosed their investments in Spot Bitcoin ETFs, signaling their exposure to BTC, the world’s largest cryptocurrency. This move comes at a time when the crypto market is experiencing a downturn, with BTC’s price hovering just above $60,000.

Both American financial institutions, Wells Fargo and JP Morgan, have taken a significant step by embracing BTC through their adoption of Spot Bitcoin ETFs, a departure from their previous cautious stance on cryptocurrencies. Wells Fargo, in its recent filing with the United States Securities and Exchange Commission (SEC), revealed its ownership of 2,245 shares of Grayscale Bitcoin Trust (GBTC) worth $121,207, which have been converted into an ETF. Additionally, the bank holds 37 shares of ProShares Bitcoin Strategy ETF (BITO) valued at $1,195.

On the other hand, JP Morgan, with approximately $2.9 trillion in Assets Under Management (AUM), disclosed its total holdings in Spot BTC ETFs in an SEC filing. The bank reported purchasing around $760,000 worth of shares in various Bitcoin trusts and ETFs, including BlackRock’s iShares Bitcoin Trust (IBIT), Fidelity’s Wise Origin Bitcoin Fund (FBTC), Grayscale Bitcoin Trust (GBTC), Bitwise Bitcoin ETF, and ProShares Bitcoin Strategy ETF (BITO). Moreover, JP Morgan also owns 25,021 shares valued at $47,000 in cryptocurrency ATM provider, Bitcoin Depot.

Despite regulatory uncertainties and market volatility, institutional interest in cryptocurrencies, particularly BTC, is on the rise. Bloomberg senior analyst, Eric Balchunas, predicts that more financial services companies will likely follow JP Morgan and Wells Fargo’s lead in disclosing their holdings in Spot Bitcoin ETFs.

However, despite growing institutional interest, BTC’s price has been facing downward pressure. Since its halving event on April 20, BTC has been trading sideways with continuous declines, dropping to around $57,000 at one point. The cryptocurrency, which reached an all-time high above $73,000 in March, has seen a 14.20% drop over the past month and is currently trading at $60,494 according to CoinMarketCap.

According to blockchain analytics platform Santiment, the lack of interest in BTC and overall market sentiment could indicate that the cryptocurrency is nearing its bottom. This recent development in the institutional investment landscape, coupled with BTC’s price movements, reflects the ongoing evolution and maturation of the cryptocurrency market.

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