BMO’s $150M Bitcoin ETF Investment Portfolio Revealed in SEC Filing

TLDR

• Canadian banking giant BMO allocates $150M to Bitcoin ETF investments
• BlackRock’s iShares Bitcoin ETF receives $139M of the total investment
• Additional $11M distributed among other major Bitcoin ETF providers
• $17,000 invested in ProShares Bitcoin futures ETF market
• Investment details revealed in mandatory SEC Form 13F-HR filing

The Bank of Montreal (BMO) has made a decisive move into the cryptocurrency market with a $150 million investment in Bitcoin ETFs, according to documents filed with the U.S. Securities and Exchange Commission (SEC). The investment represents a major step for Canada’s third-largest bank by assets into the digital currency investment space.

Details of BMO’s Bitcoin ETF holdings emerged through a Form 13F-HR filing, a mandatory disclosure required for investment firms managing assets exceeding $100 million. The filing provides a clear picture of how the banking institution has positioned itself in the growing Bitcoin ETF market.

BlackRock’s iShares Bitcoin ETF has emerged as BMO’s preferred investment vehicle, receiving $139 million of the total allocation. This decision places BMO’s trust in the market leader, as IBIT currently manages assets worth $57.03 billion, making it the largest spot Bitcoin ETF available to investors.

The remaining $11 million of BMO’s spot Bitcoin ETF investment has been carefully distributed among several other established providers. These include positions in Ark 21Shares Bitcoin ETF, Grayscale Bitcoin Trust, and Fidelity Wise Origin Bitcoin Fund, demonstrating a measured approach to diversification within the sector.

Bitcoin ETFs

Beyond the spot Bitcoin ETF market, BMO has taken an exploratory position in Bitcoin futures with a $17,000 investment in the ProShares Bitcoin ETF. While modest compared to its spot ETF holdings, this move indicates BMO’s interest in understanding different approaches to Bitcoin exposure.

The current spot Bitcoin ETF landscape features a range of options for institutional investors. Following BlackRock’s dominant IBIT fund, Fidelity’s FBTC holds $20.57 billion in assets, while Grayscale’s GBTC manages $19.44 billion. Ark 21Shares’ ARKB and Grayscale’s BTC round out the top five with $4.94 billion and $4.07 billion respectively.

Additional players in the spot Bitcoin ETF market include Bitwise’s BITB, VanEck’s HODL, Valkyrie’s BRRR, Invesco/Galaxy’s BTCO, Franklin Templeton’s EZBC, and WisdomTree’s BTCW. This variety offers institutions like BMO multiple options for gaining Bitcoin exposure through regulated products.

The documentation shows BMO’s clear preference for established ETF providers, with the bulk of its investment directed toward BlackRock’s product. This strategy suggests a focus on market leaders and products with proven liquidity and trading volumes.

Through the Form 13F-HR filing, BMO’s investment became public knowledge, offering insight into how traditional banking institutions are approaching Bitcoin exposure. The detailed disclosure outlines both spot and futures positions, providing transparency about BMO’s cryptocurrency investment strategy.

BMO’s substantial investment in BlackRock’s IBIT aligns with broader market trends, as institutional investors increasingly seek Bitcoin exposure through well-regulated financial products. The fund’s size and market position have made it an attractive option for traditional financial institutions.

The bank’s approach to diversification, spreading investments across multiple ETF providers, shows a balanced strategy toward Bitcoin exposure. This method helps manage risk while maintaining positions across different fund managers and products.

In choosing to focus primarily on spot Bitcoin ETFs, BMO has aligned itself with products that directly track Bitcoin’s price. This differs from futures-based products, which derive their value from Bitcoin futures contracts traded on regulated exchanges.

The small position in ProShares’ BITO futures ETF represents BMO’s initial step into the Bitcoin futures market. While futures ETFs operate differently from spot products, they provide another regulated avenue for gaining Bitcoin exposure.

BMO’s entrance into the Bitcoin ETF market through these disclosed positions demonstrates how traditional banks can participate in the cryptocurrency market through regulated investment vehicles. The filing provides clear documentation of the bank’s strategy and positioning in this growing market sector.

The latest filing, dated February 14, 2025, offers current insights into BMO’s Bitcoin ETF investment approach and holdings across various providers in the market.

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