Top Banks Embrace Bitcoin ETFs, Driving Trading Volume to New Heights

Trading activity in Bitcoin ETFs just hit a new peak. According to Santiment, the seven largest ETFs collectively reached $5.65 billion in volume, the most active day since late March. This surge suggests a change away from the usual large-scale on-chain accumulations by whales.

Major Banks Enter the Bitcoin ETF Market

Three days ago, American banking giants JP Morgan and Wells Fargo stepped into the Bitcoin spotlight. These banks disclosed their engagement with spot Bitcoin ETFs through recent filings, a dramatic policy change since previously, these banks had approached cryptocurrency with great caution, often debating the notion of involving their clients in such investments.

Wells Fargo’s filing with the United States Securities and Exchange Commission (SEC) revealed it holds 2,245 shares of the Grayscale Bitcoin Trust (GBTC), with a market value of $121,207. These shares have since been converted into an ETF. 

Furthermore, the bank owns 37 ProShares Bitcoin Strategy ETF (BITO) shares, amounting to $1,195. This move underscores a new, proactive approach towards cryptocurrency by one of America’s leading banks.

Not to be outdone, JP Morgan also stepped up its crypto game. The bank’s SEC filing highlighted massive investments across multiple Bitcoin-related funds, including BlackRock’s iShares Bitcoin Trust (IBIT), Fidelity’s Wise Origin Bitcoin Fund (FBTC), the Grayscale Bitcoin Trust (GBTC), Bitwise Bitcoin ETF, and the ProShares Bitcoin Strategy ETF (BITO). 

In total, JP Morgan has invested about $760,000 in these funds. The timing of these investments coincides with a notable rally in Bitcoin’s price, which increased nearly 7% in the last 24 hours alone, surpassing the $66,000 mark.

Bitcoin Price Rally and Economic Context

This rally aligns with recent economic data from the U.S. The Consumer Price Index (CPI) report indicated that core inflation has hit a three-year low of 3.4%. This decrease in inflation is a green light for many investors, including some of the world’s largest banks, to increase their stakes in Bitcoin, viewing it as a hedge against inflation.