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Wells Fargo is the latest institution to be backing digital assets but its holdings aren't exactly substantial.
In a filing with the Securities and Exchange Commission (SEC), the bank disclosed its exposure to Bitcoin ETFs through 2,245 shares of Grayscale's GBTC and 37 shares of ProShares Bitcoin Strategy futures ETF. The bank also revealed it held 52 shares in Bitcoin Depot Inc.
However, the total value of its three Bitcoin-related investments was just $143,111: GBTC investments amount to $141,817, ProShares holdings sum to $1,200, and only $99 comes from Bitcoin Depot Inc.
The total figure pales into insignificance against the third-largest American bank's $1.7 trillion in assets.
In February, Wells Fargo and Bank of America's Merrill division were providing their wealth management clients access to Bitcoin ETFs through brokerage accounts.
Wells Fargo has also been a supporter of digital assets for many years and even launched a pilot program for a digital currency system for cross-border trades. Wells Fargo Digital Cash runs on a DLT network, helping the bank “achieve near real-time money movement without impact to the underlying account, transaction postings or reconcilement infrastructure with international transactions.”
Recently, Grayscale withdrew its Grayscale Ethereum Futures Trust ETF application to the SEC.
In a notice of withdrawal, the crypto asset manager did not state reasons for its withdrawal but did list a number of delays by the SEC in reviewing proposals.
"On November 15, 2023... The Commission designated a longer period within which to approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether to disapprove the proposed rule change," The filing stated.
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Grayscale's parent company, Digital Currency Group (DCG) saw its revenue jump 51% year on year and 11% over its most recent quarter.
DCG's revenue came in at $229 million, while Grayscale accounted for $156 million of its first-quarter 2024 revenue. Since Grayscale converted its Bitcoin Trust (GBTC) to an ETF in January, the fund has seen about $17.4 billion in outflows and only two days of inflows.
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