Quick Take:

• Wells Fargo, the third-largest US bank, allocates $143 million to Bitcoin investments.
• Investments include Grayscale Bitcoin Trust (GBTC), Bitcoin ATM provider Bitcoin Depot, and ProShares Bitcoin Strategy ETF (BITO).
• Move signifies a significant step in institutional adoption of Bitcoin.

Wells Fargo, the third-largest bank in the United States, has recently disclosed significant investments in Bitcoin, signaling a notable stride in institutional adoption of the cryptocurrency.

According to a 13F-HR form submitted on Friday, Wells Fargo has allocated a total of $143 million across three different Bitcoin investment products as of March 31.

The bulk of these funds are held within the Grayscale Bitcoin Trust (GBTC), a Bitcoin spot ETF designed to track Bitcoin’s spot price during traditional stock market hours. GBTC directly backs its shares with a fixed amount of BTC, gradually decreasing over time due to management fees.

In addition to GBTC, Wells Fargo has invested $99,000 in the Bitcoin ATM provider Bitcoin Depot and $1.2 million in the ProShares Bitcoin Strategy ETF (BITO), a Bitcoin futures ETF.

While this investment represents a small fraction of Wells Fargo’s $603 billion in assets under management and may have decreased alongside Bitcoin’s price since the reporting period, it marks a significant move in the banking giant’s approach to cryptocurrency.

Wells Fargo began offering Bitcoin ETFs as an investment option in February, catering to clients specifically seeking exposure to the digital asset. Since January, US Bitcoin spot ETFs have witnessed substantial net inflows, totaling $11.8 billion.

The bank’s investment in GBTC is notable, despite its higher management fees compared to other competitors. Grayscale, currently the largest Bitcoin ETF, has seen persistent outflows since January 11, despite its pre-ETF launch Bitcoin holdings.

The move by Wells Fargo underscores the increasing interest and acceptance of Bitcoin within traditional financial institutions, paving the way for further institutional adoption and integration of cryptocurrencies into mainstream investment strategies.