Trading Volume for Bitcoin ETFs Soars as Top Banks Embrace Them

Trading activity in Bitcoin ETFs has reached a new peak, with the seven largest ETFs collectively reaching a volume of $5.65 billion in a single day, marking the most active day since late March, according to Santiment. This surge in activity suggests a shift away from the usual large-scale on-chain accumulations by whales.

Recently, major American banks JP Morgan and Wells Fargo have entered the Bitcoin ETF market, making a significant policy change. Previously cautious about cryptocurrency, these banks have now disclosed their engagement with spot Bitcoin ETFs through recent filings.

Wells Fargo’s filing with the United States Securities and Exchange Commission (SEC) revealed that it holds 2,245 shares of the Grayscale Bitcoin Trust (GBTC) with a market value of $121,207, which have since been converted into an ETF. In addition, the bank owns 37 shares of the ProShares Bitcoin Strategy ETF (BITO) amounting to $1,195. This move demonstrates Wells Fargo’s proactive approach towards cryptocurrency.

JP Morgan has also joined the crypto game, as highlighted in its SEC filing. The bank has made massive investments across multiple Bitcoin-related funds, including BlackRock’s iShares Bitcoin Trust (IBIT), Fidelity’s Wise Origin Bitcoin Fund (FBTC), the Grayscale Bitcoin Trust (GBTC), Bitwise Bitcoin ETF, and the ProShares Bitcoin Strategy ETF (BITO). In total, JP Morgan has invested approximately $760,000 in these funds. Interestingly, these investments coincide with a notable rally in Bitcoin’s price, which has increased by nearly 7% in the last 24 hours alone, surpassing the $66,000 mark.

This rally in Bitcoin’s price aligns with recent economic data from the U.S. The Consumer Price Index (CPI) report indicates that core inflation has hit a three-year low of 3.4%. This decrease in inflation has encouraged many investors, including some of the world’s largest banks, to increase their stakes in Bitcoin, seeing it as a hedge against inflation.

In conclusion, Bitcoin ETF trading activity has reached a new peak, major banks like JP Morgan and Wells Fargo have entered the market, and the recent rally in Bitcoin’s price is in line with decreasing inflation, driving investors towards the cryptocurrency.