- Pair of big banks broadens their crypto interests.
- Wells Fargo and JPMorgan both made Bitcoin (BTC) fund registration with the SEC.
Moreover, Wells Fargo partners with the New York Digital Investment Group (NYDIG). NYDIG is a leading technology and financial services company, and also FS Investments on the offering.
More so, Wells Fargo will receive an unknown percentage of sales via two of its subsidiaries. These include Wells Fargo Clearing Services and Wells Fargo Advisors Financial Network. Also, JPMorgan collaborates with NYDIG, receiving a percentage of sales via subsidiaries. Neither fund had completed any sales, at the time of the filings.
In addition, the two megabanks are the latest in a growing number that is gradually embracing crypto assets. This year JPMorgan cautiously explained that crypto investors add Bitcoin to their portfolio, explaining that allocations of up to 1% of their portfolio can reach any efficient gain in the overall risk-adjustment profits.
By funneling millions of dollars into crypto firms, JPMorgan Chase, Wells Fargo, and Goldman Sachs hedged their bets for the possibility of a bankless future. All-in-all, BNY Mellon announced plans at the beginning of this month to create a new team that is developing a custody and administration platform for traditional and crypto-assets. Even more, an investment unit of Morgan Stanley is in the process of considering whether to bet on Bitcoin.
Until 2020, Banks didn’t really have a choice in the matter. Furthermore, the Office of the Comptroller of the Currency (OCC) did not give access to banks to hold cryptocurrencies until last July. Therefore, that shift provides banks the green light to start exploring digital asset operations.