Regulatory easing drives Wall Street's entry, New York Mellon's $13 million BTC ETF holdings revealed
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Regulatory easing drives Wall Street's entry, New York Mellon's $13 million BTC ETF holdings revealed
This is another sign of traditional financial institutions increasing their investment in digital assets.
Navigating Web3 tides with focused insightsSource: cryptoslate
Compiled by: Blockchain Knight
BNY Mellon disclosed holdings of over $13 million in BTC ETFs at the end of the fourth quarter, another sign of traditional financial institutions increasing their investments in digital assets.
According to the latest filing submitted to the U.S. Securities and Exchange Commission, BNY Mellon holds 115,108 shares of WisdomTree BTCW, valued at approximately $11.87 million, and 25,309 shares of BlackRock's iShares IBIT, valued at around $1.4 million.
BNY Mellon’s position in BTC ETFs further indicates that major Wall Street banks are cautiously entering the digital asset space.
For example, JPMorgan holds nearly $1 million in BTC ETF shares. Goldman Sachs reported holding 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 spot BTC ETFs in early 2024, allowing institutional and retail investors to invest in BTC without directly holding the asset—a move widely seen as a pivotal moment for traditional finance adoption of crypto assets.
Despite growing participation through ETFs, regulatory restrictions still prevent banks from directly holding or trading crypto assets.
Goldman Sachs CEO David Solomon reiterated in December that regulatory barriers limit banks from directly holding crypto assets, stating while the firm offers digital asset advisory services, it is not permitted to hold BTC on its balance sheet.
Despite current limitations, regulators have begun shifting their stance under the new U.S. administration.
Federal Reserve Chair Jerome Powell recently reaffirmed that the Fed would not block banks from offering crypto-related services as long as they manage associated risks appropriately.
Speaking before Congress on February 12, he noted that many banks supervised by the Federal Reserve are already involved in the crypto space in accordance with established guidelines. However, he did not address whether banks could invest in and hold BTC as part of their treasury reserves, only warning against excessive exposure.
Powell’s comments align with a broader trend in Washington toward a more accommodating stance on crypto assets.
The U.S. Congress has recently advanced bipartisan legislation aimed at establishing clearer regulatory frameworks for crypto assets, while the SEC has paused several lawsuits against major crypto companies, marking a shift from its previously aggressive enforcement approach.
In addition, the Treasury Department has expressed openness to stablecoin regulation, and lawmakers continue pushing for regulatory clarity to prevent innovation from moving overseas.
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