While cryptos still aroused a lot of skepticism a few years ago, 2024 marks a turning point in their adoption by traditional financial institutions. Merrill Lynch and Wells Fargo, two of the largest US banks, are now starting to offer Bitcoin ETFs to their wealthiest clients.
Merrill Lynch and Wells Fargo adopt Bitcoin ETFs
This year, Merrill Lynch, the wealth management arm of Bank of America, began offering its clients the opportunity to invest in Bitcoin ETFs. These funds replicate the price of the first crypto and allow exposure to BTC without having to hold it directly.
Wells Fargo, for its part, now offers its wealthy private clients the opportunity to invest in Bitcoin ETFs through dedicated companies. This historic bank thus follows the example of other institutions which have paved the way for these investments in recent years.
These initiatives reflect the growing interest of traditional banks in crypto-assets, even though some of them were initially hostile to them. They pave the way for the arrival of a new category of institutional investors in this market.
Bitcoin ETF Investment Records
This growing interest is reflected in the amounts invested in Bitcoin ETFs by this clientele. very wealthy individuals. On February 21, 2024 alone, these funds attracted $673 million in investments in one day. This is an absolute record since the creation of these ETFs.
In total, more than $5 billion was injected into Bitcoin ETFs during the month of February 2024 alone. The cumulative capitalization of these BTC-indexed funds now exceeds $70 billion.
These record investments come against a backdrop of a rebound in the price of Bitcoin. The crypto has indeed made a big comeback since the start of the year, once again exceeding the $50,000 mark at the beginning of February 2024. Its price is now over $61,000. Enough to revive investor interest in this market.
The arrival of Merrill Lynch, Wells Fargo and other traditional institutions demonstrates the maturation of the crypto market. The investment of record sums in Bitcoin ETFs by their wealthiest clients heralds massive adoption by mainstream investors in the years to come. As regulations become clearer, cryptos are quietly taking their place in the dominant financial landscape.
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