The Bank of New York Mellon (BNY Mellon) disclosed holdings of more than $13 million in Bitcoin exchange-traded funds (ETFs) at the end of the fourth quarter, marking another sign of traditional financial institutions increasing their exposure to digital assets.
According to a newly filed disclosure with the SEC, BNY Mellon owns 115,108 shares of WisdomTree Bitcoin Fund (BTCW), valued at approximately $11.87 million, and 25,309 shares of BlackRock’s iShares Bitcoin Trust (IBIT), worth about $1.4 million.
Wallstreet warming up to Bitcoin
BNY Mellon’s position in Bitcoin ETFs adds to a growing trend among major Wall Street banks cautiously entering the digital asset space.
JPMorgan Chase, for instance, holds nearly $1 million in Bitcoin ETF shares, while Goldman Sachs reported an exposure of over $2 billion in Bitcoin and Ethereum ETF holdings at the end of the fourth quarter.
The SEC approved spot Bitcoin ETFs in early 2024, allowing institutional and retail investors to gain exposure to Bitcoin without direct custody of the asset. The move has been widely regarded as a pivotal moment for crypto adoption in traditional finance.
Despite increasing participation through ETF investments, regulatory constraints continue to prevent major banks from directly holding or trading cryptocurrencies.
Goldman Sachs CEO David Solomon reiterated in December that regulatory barriers limit banks from direct crypto ownership, stating that while the firm provides advisory services on digital assets, it is restricted from holding Bitcoin as a principal.
Regulatory stance shifting
Despite the current limitations, regulators are starting to shift their stances under the new US administration. Federal Reserve Chair Jerome Powell recently reaffirmed that the Fed will not block banks from offering crypto services, provided they manage associated risks.
Speaking before Congress on Feb. 12, he noted that many Fed-regulated banks already engage in crypto under established guidelines but warned against excessive exposure. However, he did not discuss banks potentially investing and holding Bitcoin in their treasuries.
Powell’s comments align with a broader shift toward a pro-crypto stance in Washington. Congress recently advanced bipartisan legislation to establish clearer crypto regulations, while the SEC has about-faced on its enforcement-heavy approach by pausing several lawsuits against major crypto firms.
Additionally, the Treasury has signaled openness to stablecoin oversight, and lawmakers continue pressing for regulatory clarity to prevent innovation from moving offshore.
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