$27 trillion AUM rests on bitcoin and crypto: CoinShares CSO

There are at least $27 trillion in assets under management by major US financial institutions that are “actively” trying to give customers exposure to bitcoin (BTC) and crypto.

On June 26, CoinShares chief strategy officer Meltem Demirors highlighted at least eight major financial institutions that have indicated moves in the digital asset sector, including BlackRock’s spot bitcoin ETF filing and Fidelity’s crypto wealth management solution. Are.

Others include JP Morgan, Morgan Stanley, Goldman Sachs, BNY Mellon, Invesco and Bank of America.

“Many of the largest financial institutions in the US are actively working to provide access to bitcoin, etc.,” he added. He said that between them they have a whopping $27 trillion in assets under management.

1/ last week @black Rock The Spot Bitcoin ETF Filing Was Big News!

But, this is not the only story. Many of America’s largest financial institutions are actively working to provide access to bitcoin, etc.

A Quick Glance – There’s $27 Trillion in Customer Assets! pic.twitter.com/azmHZmUL2a

— Meltem Demirs (@Melt_Dem) 26 June 2023

Earlier this month, BlackRock’s June 16 spot bitcoin exchange-traded fund application sparked a wave of filings for similar products, fueling a narrative that suggests “institutions are coming” for bitcoin.

According to CoinGecko, the BTC price hit a 2023 high of $31,185 on June 24 amid growing confidence.

Demirors, however, said that although “entities are coming,” it is still more of a wave. “We are seeing bridges being built in real time,” he said.

It should be noted that the $27 trillion figure is an estimate of total assets under management across eight institutions and only a small fraction of this will be allocated to crypto investments.

Yet, Will Clemente, co-founder of Reflexivity Research, still resounding Demiror’s sentiment indicates that bitcoin has a market capitalization of less than $600 billion.

“Between HSBC, BlackRock, Fidelity and Schwab we are talking about $25 trillion in assets under management that will soon be able to buy bitcoin.”

Institutional investors are already showing more interest in bitcoin-related funds. As Cointelegraph reports, the ProShares Bitcoin Strategy ETF (BITO) saw its largest weekly inflows in a year, taking AUM to over $1 billion.

Connected: BlackRock’s Bitcoin ETF Is ‘The Best Thing Ever’ to BTC, Or Is It?

Earlier this week, Federal Reserve Board of Governors member Michelle Bowman criticized the absence of a crypto regulatory framework, claiming that the uncertainty over the asset class traps institutions in a “supervisory vacuum.”

magazine: Crypto Regulation: Does SEC Chairman Gary Gensler Have the Final Decision?