- BNY Mellon has acquired $13.28 million in Bitcoin ETF holdings, split between WisdomTree ($11.87M) and BlackRock ($1.4M) funds
- Goldman Sachs holds over $2 billion in crypto ETFs, while JPMorgan has nearly $1 million in exposure
- The SEC approved spot Bitcoin ETFs in early 2024, enabling institutional investment without direct crypto custody
- Federal Reserve Chair Powell confirmed banks can offer crypto services with proper risk management
- Current regulations prevent banks from directly holding cryptocurrencies, though regulatory stance is shifting under new administration
The Bank of New York Mellon (BNY Mellon) has revealed investments totaling $13.28 million in Bitcoin exchange-traded funds (ETFs), according to a recent Securities and Exchange Commission (SEC) filing.
The bank’s portfolio includes 115,108 shares of the WisdomTree Bitcoin Fund (BTCW), valued at $11.87 million, and 25,309 shares of BlackRock’s iShares Bitcoin Trust (IBIT), worth approximately $1.4 million.
This move by one of America’s oldest banks represents part of a larger trend among traditional financial institutions stepping into the cryptocurrency market through regulated investment vehicles. The disclosure comes after the SEC’s approval of spot Bitcoin ETFs in early 2024, which created a new pathway for institutional investors to gain exposure to digital assets.
BNY Mellon’s investment follows similar moves by other major Wall Street players. Goldman Sachs has taken a larger position, holding $1.63 billion in Bitcoin ETF shares and an additional $196.3 million in Ethereum ETF shares. JPMorgan Chase has also entered the space, though with a more modest investment of nearly $1 million in Bitcoin ETF shares.
The introduction of spot Bitcoin ETFs has created a bridge between traditional finance and digital assets. These investment products allow institutions and retail investors to gain exposure to Bitcoin’s price movements without the technical complexities of direct cryptocurrency ownership and storage.
Regulatory Landscape
Despite this growing acceptance of crypto-based investment products, regulatory restrictions continue to limit banks’ direct involvement with digital assets. Goldman Sachs CEO David Solomon addressed these limitations in December, explaining that current regulations prevent regulated banking institutions from holding cryptocurrencies like Bitcoin as principal assets.
The regulatory landscape, however, appears to be evolving. Federal Reserve Chair Jerome Powell recently addressed Congress on February 12, confirming that the Federal Reserve would not prevent banks from offering crypto-related services, provided they maintain appropriate risk management practices.
Many Fed-regulated banks already engage with cryptocurrency under existing guidelines, though Powell emphasized the importance of managing exposure levels. The discussion did not extend to the possibility of banks holding Bitcoin in their treasuries, leaving that question open for future consideration.
The shift in regulatory approach coincides with changes in Washington’s stance toward digital assets. Congress has made progress on bipartisan legislation aimed at establishing clearer cryptocurrency regulations. This legislative movement comes as the SEC has paused several enforcement actions against major cryptocurrency firms.
The Treasury Department has shown increased openness to discussing stablecoin oversight, while lawmakers continue to push for regulatory clarity. These efforts aim to prevent innovation in the cryptocurrency sector from moving to other countries with more welcoming regulatory frameworks.
The investment choices of major banks like BNY Mellon indicate a calculated approach to cryptocurrency exposure. By choosing ETFs over direct cryptocurrency holdings, these institutions can participate in the digital asset market while operating within current regulatory boundaries.
These ETF investments provide a regulated and familiar structure for traditional financial institutions to gain cryptocurrency exposure. The products track the price of Bitcoin without requiring direct ownership of the underlying asset, addressing concerns about custody and security.
The numbers reveal the scale of institutional interest: BNY Mellon’s combined Bitcoin ETF holdings of $13.28 million, Goldman Sachs’s larger position of over $1.8 billion in various crypto ETFs, and JPMorgan’s initial step with nearly $1 million in exposure demonstrate varying levels of commitment to the sector.
