Major US Bank Bets Big on Crypto with 20% Wealth Allocation to Bitwise ETF, CEO Confirms

A major US bank has made a significant move into the cryptocurrency market, allocating a fifth of its wealth management portfolio to an exchange-traded fund (ETF).

The Big Bet: Hunter Horsley, the Chief Executive Officer of Bitwise Asset Management and co-founder of the 5-year-old firm, shared on Friday that he received a report about a major U.S. bank that has invested in a Bitwise exchange-traded fund (ETF) through 20% of its wealth management branches. Bitwise Asset Management, the provider of the ETF, through its CEO, confirmed the bank’s involvement but did not disclose its identity and instead noted that, “Bitcoin & crypto are entering the mainstream.”

The Bigger Picture: A major U.S. bank’s significant investment in Bitwise ETF could be a watershed moment for the cryptocurrency market. This move not only legitimizes cryptocurrencies, potentially attracting more conservative investors, but it also paves the way for greater mainstream adoption and integration into traditional finance.

Additionally, this institutional embrace could spur regulatory clarity, financial innovation, and portfolio diversification. While the potential impact is vast, including potential influences on monetary policy and global financial systems, the risks of volatility, regulatory hurdles, and market manipulation must also be acknowledged. Nevertheless, this bold move signals a potential paradigm shift in the financial landscape.

ETF Gateway: In a separate X post, Horsley also revealed the robust performance of the Bitwise Bitcoin ETF: “$68,000,000 inflows into the Bitwise Bitcoin ETF ($BITB) this week. AUM >$2,500,000,000. BITB investors support open-source Bitcoin developers with 10% of gross profits donated.” This influx of investment and the fund’s substantial assets under management reflect the strong demand for Bitcoin exposure through regulated investment products.

The Bitwise Bitcoin ETF (BITB) not only provides a gateway for institutional and individual investors to gain exposure to Bitcoin but also supports the broader cryptocurrency ecosystem. It offers investors regulated exposure to Bitcoin’s price movements without directly owning the cryptocurrency. The fund allocates 10% of its gross profits to fund open-source Bitcoin development, ensuring that part of the investors’ returns contribute to the ongoing innovation and security of the Bitcoin network.

The Caveat: While this institutional embrace of Bitcoin is a promising development, it’s important to acknowledge the potential risks. Cryptocurrencies remain a volatile asset class, with prices subject to significant fluctuations. Regulatory uncertainty also looms large, as governments grapple with how to oversee this emerging market. Additionally, the risk of market manipulation and security breaches cannot be ignored. While the bank’s investment signals growing confidence in Bitcoin, investors should approach the crypto market with caution and conduct thorough research before making any decisions.

Price Action: Bitcoin’s price soared to an impressive $66,754.74 as of 11:17 p.m. ET on Friday, reflecting a remarkable 4.26% surge within the last 24 hours. This surge is part of a broader upward trend, with Bitcoin’s value skyrocketing by 15.15% over the past week and 2.45% over the last month.

This dramatic increase in price was accompanied by a significant boost in trading volume, which surged by 39.33% to reach a staggering $36.8 billion in just 24 hours, as per data from CoinMarketCap. With a current circulating supply of 19,728,018 BTC, Bitcoin’s market capitalization also experienced a notable 4.05% increase, reaching an astounding $1.315 trillion. This figure further solidifies Bitcoin’s position as the leading cryptocurrency, dominating the global market.

Yona has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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