$27 trillion AUM is perched over Bitcoin and crypto: CoinShares CSO

Major U.S. Financial Institutions Managing $27 Trillion in Assets

Major U.S. financial institutions are managing at least $27 trillion of assets and actively trying to offer clients the opportunity to invest in Bitcoin (BTC) and other cryptocurrencies.

Meltem Demirors, Chief Strategy Officer of CoinShares, pointed out on June 26th that at least eight major financial institutions are taking steps in the digital assets sector, such as BlackRock’s application for a Bitcoin ETF and Fidelity’s crypto wealth management services.

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

She pointed out that a large number of the most significant financial institutions in the US are taking action to offer access to Bitcoin and other cryptocurrencies, and that the total value of assets they manage is a staggering $27 trillion.

Earlier this month, the filing of BlackRock’s June 16 Bitcoin exchange-traded fund application initiated a surge of documents for comparable products, reinforcing the idea that “institutions are coming” for Bitcoin.

On June 24th, CoinGecko reported that the price of BTC had achieved a record high for the year 2023 of $31,185, due to a surge in confidence.

Demirors commented that the influx of institutions is more of a slow process than a sudden surge. “We can observe the connections being established as we speak,” she added.

It is important to keep in mind that the $27 trillion figure is an estimation of the total assets managed by the eight institutions, and only a very small fraction of this would likely be invested in crypto.

Despite this, Will Clemente, co-founder of Reflexivity Research, still echoed Demiror’s opinion, noting that Bitcoin’s market capitalization is below $600 billion.

Institutional investors are beginning to take a greater interest in Bitcoin-linked funds. According to Cointelegraph, the ProShares Bitcoin Strategy ETF (BITO) has experienced its biggest weekly influx of capital in a year, pushing the fund’s assets under management (AUM) beyond the $1 billion mark.

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