Source: cryptoslate
Compiled by: Blockchain Knight
BNY Mellon disclosed that it held over $13 million in BTC ETF at the end of the fourth quarter, which is another sign of traditional financial institutions increasing their investment in digital assets.
According to the latest disclosure filed with the U.S. Securities and Exchange Commission, BNY Mellon owns 115,108 shares of the WisdomTree BTCW, worth about $11.87 million, and 25,309 shares of the iShares IBIT, worth about $1.4 million.
BNY Mellon's position in the BTC ETF further indicates that major Wall Street banks are cautiously entering the digital asset space.
For example, JPMorgan Chase holds nearly $1 million in BTC ETF shares. Meanwhile, Goldman Sachs reported that it held over $2 billion in BTC and ETH ETF shares as of the end of the fourth quarter.
The U.S. Securities and Exchange Commission approved the spot BTC ETF in early 2024, allowing institutional and retail investors to invest in BTC without directly custodying the assets, which is widely seen as a key moment in the traditional finance's adoption of Crypto assets.
Although the participation through ETF investments is constantly increasing, regulatory restrictions still prevent major banks from directly holding or trading Crypto assets.
Goldman Sachs CEO David Solomon reiterated in December that regulatory hurdles prevent banks from directly holding Crypto assets, and stated that while the company provides digital asset advisory services, it is not allowed to hold BTC as principal.
Despite the current restrictions, under the new U.S. administration, regulators are starting to shift their stance.
Federal Reserve Chair Jerome Powell recently reiterated that the Fed will not prevent banks from providing Crypto services as long as they manage the associated risks properly.
On February 12, he stated in a congressional hearing that many banks under the Fed's supervision have already ventured into the Crypto asset space in accordance with established guidelines. However, he did not discuss banks potentially investing in and holding BTC as part of their treasury, only warning against over-investing.
Powell's remarks are in line with the trend of Washington's shifting stance towards Crypto assets.
The U.S. Congress has recently pushed for a bipartisan legislation to establish clearer Crypto asset regulations, while the SEC has paused several major enforcement actions against Crypto asset companies, shifting away from its previously aggressive approach.
Additionally, the Treasury Department has expressed an open stance on stablecoin regulation, with lawmakers continuing to pressure for clear regulations to prevent innovation from moving overseas.
