Growing institutional interest prompts BNY Mellon’s investment in Bitcoin ETFs
BNY Mellon, the oldest and largest custodian bank in the U.S., recently made public its investment in Bitcoin exchange-traded funds (ETFs). In a filing with the U.S. Securities and Exchange Commission (SEC), the bank revealed its exposure to BTC ETFs offered by BlackRock and Grayscale, showcasing the growing interest of institutional investors in cryptocurrencies.
The SEC’s approval of 11 spot Bitcoin ETFs earlier this year was a significant milestone for crypto investors in the United States. This decision came after a sustained demand from investors for such financial instruments. The anticipation and subsequent approval of ETFs sparked a surge in the crypto market, driving BTC to a new record high of $73,737 in March. The increasing demand for BTC ETF exposure reflects a broader trend of institutional investors embracing this emerging asset class.
Additionally, Hong Kong’s financial authorities have given the green light to spot Bitcoin and Ethereum ETFs, which are scheduled to begin trading on April 30. This approval signifies the global acceptance and integration of cryptocurrencies into traditional financial markets. According to CoinCodex, Bitcoin is predicted to reach a new peak of $84,412 on May 25, potentially fueled by the launch of Hong Kong’s BTC ETF. If the U.S. follows suit and approves a spot Ethereum ETF, it could trigger another significant rally in the crypto market, especially for Ethereum.
Currently trading at a substantial discount compared to its all-time high in November 2021, Ethereum stands to benefit from further institutional adoption. In related news, BlackRock’s Bitcoin ETF has experienced a $217 million outflow.
