Wall Street Banks Load Up on Bitcoin and Ethereum ETFs: What Are They Holding?

• JPMorgan raised its investments in both Bitcoin and Ethereum ETFs, while Goldman Sachs made substantial investments in Bitcoin ETFs.
• Both JPMorgan and Morgan Stanley have increased their stakes in MicroStrategy, a Bitcoin-focused company, with JPMorgan adding 660,693 shares, and Morgan Stanley expanding its holdings by 22.6%.

Major Wall Street banks are ramping up positions in spot Bitcoin and Ethereum ETFs. The latest 13F filings with the U.S. Securities and Exchange Commission show that major Wall Street banks have greatly changed their positions about crypto ETFs. In addition, they have acquired a significant stake in the Bitcoin-only stock MicroStrategy Inc. (MSTR) in the third quarter ending September 30, 2024.

Wall Street Banks Bet Big On Bitcoin and Ethereum ETFs

JPMorgan Chase & Co., the largest global bank by market capitalization, increased its stakes in Bitcoin and Ethereum ETFs this quarter. After liquidating its entire stake in the quarter, the bank bought 387 units of iShares Bitcoin Trust ETF (IBIT) valued at $13,982. It also invested in Fidelity Wise Origin Bitcoin Fund, buying 213 shares worth $11,877.

In total, JPMorgan’s Bitcoin ETF investments have risen to about $65,000. The bank also invested in Ethereum ETFs. Its first batch of purchases of shares in the Grayscale Ethereum Trust ETF and the Grayscale Ethereum Mini Trust ETF are valued at approximately $30,700. Furthermore, JPMorgan also increased its stake in MicroStrategy to 660,693 shares worth $111.39 million at quarter-end through a 12.5% increase in holding.

Moreover, Goldman Sachs maintained a much higher stake in Bitcoin ETFs with millions of dollars poured in. The renowned bank revealed $710 million in investments in Bitcoin ETFs in the Q3 filing. It owns 12.7 million shares in iShares Bitcoin Trust ETF (IBIT) to the tune of $461 million, placing it as the second-largest holder in the global fund.

Goldman Sachs also possesses Ethereum ETF assets standing at $25.16 million, distributed across the Grayscale Mini Trust and Fidelity Ethereum Fund. However, Goldman’s holding in MicroStrategy declined as the company sold 534,894 shares in the quarter, with the remaining stake valued at $140.44 million.

On the other hand, Morgan Stanley’s Bitcoin ETF investments fell to $183.39 million from $203 million in the previous quarter. The decline came when it sold 449,802 shares in the iShares Bitcoin Trust ETF.

Despite the outflows from Bitcoin ETFs, Morgan Stanley has invested in Ethereum ETFs mainly via the iShares Ethereum Trust ETF. On its part, the bank has further invested in MicroStrategy, increasing the holding by 22.6% to 9,595,008 shares for $1.61 billion. This comes as MicroStrategy continues with its aggressive Bitcoin acquisition strategy, per the CNF report. 

Last Week’s ETF Flows

Despite the increase in institutional investments, both Ethereum ETF and Bitcoin ETFs suffered towards the end of last week. On Friday, November 15, Bitcoin ETFs experienced a net outflow of $239.6 million. However, the weekly total reached a significant inflow of $1,80 billion. Among major players, BlackRock led with $130.4 million in daily inflows. 

Conversely, Fidelity reported outflows of $175.1 million, Ark Invest recorded $108.6 million in outflows, and Grayscale’s BTC mini-ETF saw $47 million in outflows. Meanwhile, the Ether ETF outflows hit $41.2 million that day. Nonetheless, BlackRock’s ETHA shone with $18.6 million inflows while Fidelity’s FETH saw $18.4 million outflow alongside Grayscale’s ETHE outflow of $40.3 million, reported CNF.