In recent months, major financial institutions on Wall Street, such as Wells Fargo, Cantor Fitzgerald, and Jane Street, have made notable moves to increase their Bitcoin-related holdings.
According to updates from the Quiver Quantitative securities analysis platform, these companies are investing billions of dollars in leading cryptocurrencies through ETFs and cryptocurrency-focused stocks like Strategy. Bitcoin ETFs allow institutional investors to track BTC prices without encountering the complexities associated with directly holding digital assets.
Wells Fargo enhances exposure to Bitcoin
In the second quarter, Wells Fargo significantly expanded its stake in BlackRock's iShares Bitcoin Trust (IBIT), the largest Bitcoin-focused fund currently. As of June 30, the bank held over $160 million in IBIT shares, a sharp increase from approximately $26 million at the end of the first quarter.
In addition, Wells Fargo also maintains a modest exposure to Grayscale's GBTC, with a value of $200,000. Notably, the bank has increased its holdings in Strategy by approximately $143 million, raising its total exposure to the Bitcoin-focused software company to $291 million. These moves reflect the bank's cryptocurrency investment strategy that combines ETFs and stocks.
Cantor Fitzgerald continues to pivot towards cryptocurrency
Under the leadership of Commerce Secretary Howard Lutnick, Cantor Fitzgerald has also increased its Bitcoin ETF position to over $250 million. According to Quiver Quantitative's portfolio, the company has invested approximately $150 million in Bitcoin through Fidelity's FBTC ETF, while reducing its IBIT holdings by $16 million in the second quarter.
In addition to Bitcoin-related ETFs, the company's investments in cryptocurrency-related stocks, including Strategy's MSTR, Coinbase, Robinhood, as well as Bitcoin mining companies like Riot Platforms and Terawulf, have a total value of approximately $2 billion. These moves align with Cantor Fitzgerald's history of active investment in cryptocurrency investment vehicles, including Twenty One Capital. Notably, the bank also maintains a significant working relationship with Tether, the world's largest stablecoin issuer.
IBIT dominates Jane Street's portfolio
According to the portfolio update, Jane Street Group, a global proprietary trading firm, currently holds $1.46 billion in IBIT shares, marking the largest position in their portfolio, surpassing the $1.41 billion investment in Tesla. The company has also bolstered its Strategy shares by $64 million, while reducing its exposure to Fidelity's FBTC by $231 million, leaving a remaining position of $404 million.
Other cryptocurrency-related investments by Jane Street include Coinbase and IREN, reflecting the company's diverse approach to exposure to digital assets.