Recently, Bank of New York Mellon disclosed its investment portfolio to the public, revealing its gradual increase in digital assets. As of the end of the fourth quarter, the bank held more than $13 million in Bitcoin exchange-traded funds (ETFs), a move that undoubtedly indicates that the pace of investment by traditional financial institutions in the field of digital assets is accelerating.
According to documents disclosed by the SEC, Bank of New York Mellon's asset allocation includes 115,108 shares of WisdomTree Bitcoin Fund (BTCW), with a market value of approximately US$11.87 million, and 25,309 shares of BlackRock iShares Bitcoin Trust (IBIT), with a market value of approximately US$1.4 million.
This disclosure not only showcases the bank's confidence in cryptocurrency investments but also provides new evidence of Wall Street's increasing interest in digital assets.
Wall Street accelerates embrace of Bitcoin investment
The actions and layout of Bank of New York Mellon not only reflect the bank's growth in digital asset investment but also mark a significant increase in Wall Street's interest in Bitcoin.
In addition, JPMorgan also holds nearly $1 million in Bitcoin ETF shares, while Goldman Sachs reported holdings of Bitcoin and Ethereum ETF shares exceeding $2 billion, further demonstrating the increasing attention of mainstream financial institutions to cryptocurrencies.
The SEC approved a spot Bitcoin ETF in early 2024, allowing institutional and retail investors to invest in Bitcoin without directly holding the assets. This move is widely seen as a key moment for traditional finance's adoption of cryptocurrencies.
Although the ETF channel provides banks with a way to invest in Bitcoin, regulatory restrictions remain a significant barrier.
On the other hand, Goldman Sachs CEO David Solomon reiterated in a December statement that banks currently cannot directly hold or trade cryptocurrencies due to regulatory restrictions.
Solomon emphasized that although Goldman Sachs provides digital asset advisory services, the company is not allowed to use its principal to purchase and hold Bitcoin. This statement reveals that despite Wall Street's growing interest in Bitcoin, the regulatory framework remains a key constraint for further participation in the crypto market.
The regulatory attitude of the new U.S. government is gradually easing
Although the current regulatory environment still has certain restrictions, under the guidance of the new U.S. government, regulators' attitudes towards cryptocurrencies are gradually changing.
Federal Reserve Chairman Jerome Powell recently reiterated that as long as banks can manage the associated risks properly, the Fed will not hinder them from providing cryptocurrency-related services.
In a congressional speech on February 12, Powell mentioned that many banks regulated by the Federal Reserve have entered the cryptocurrency market based on existing guidelines, while he also reminded the industry to avoid over-investing.
Although he did not mention the possibility of banks investing in Bitcoin as treasury bonds, his remarks clearly resonate with Washington's shift in regulatory stance on cryptocurrencies.
This shift is reflected in the recent bipartisan legislation pushed by the U.S. Congress, aimed at establishing clearer regulatory rules for cryptocurrencies.
Meanwhile, the U.S. Securities and Exchange Commission has also adjusted its enforcement strategy and suspended several lawsuits against major cryptocurrency companies, indicating a relaxation of regulatory intensity.
Additionally, the U.S. Treasury has shown an open attitude towards stablecoin regulation. To prevent innovative forces from drifting to overseas markets, legislators continue to pressure for clearer regulations. These dynamics together signify a gradual acceptance and inclusivity of the U.S. regulatory environment towards cryptocurrencies.
Conclusion:
As traditional financial institutions like Bank of New York Mellon gradually increase their holdings in digital assets, and with the gradual easing of the U.S. regulatory environment, cryptocurrencies are gradually integrating into the mainstream financial system.
Despite the ongoing regulatory challenges, Wall Street's growing interest in cryptocurrencies suggests that digital asset investment will become an important part of the financial sector.
