The United States’ oldest and largest custodian bank, BNY Mellon, has officially formalised its entry into Bitcoin (BTC) investing via ETFs. In a recent SEC filing, the company revealed its stakes in BTC ETFs managed by BlackRock and Grayscale.
The approval of the 11 spot Bitcoin ETFs by the SEC in January 2024 has redefined how cryptocurrency investments are done in America. The introduction of these ETFs raised a lot of hype, driving Bitcoin to a record high of $73,737 in March. The participation of BNY Mellon is just another evidence of increasing institutional interest in the domain of cryptocurrency.
In addition, the permission of Bitcoin ETFs in the USA has opened Pandora’s box in the world’s markets. It is worth noting that Hong Kong has joined the line, also greenlighting its Bitcoin and Ethereum spot ETFs, which are set to trade from April 30, 2024. The increase in global centres of financial services, in this case, shows the wider spread and acceptance of cryptocurrencies in standard financial systems.
Market Predictions
Market analysts forecast a strong bullish move for Bitcoin, with the anticipated movement to $85,195 as of late May 2024. This positive outlook is based on the ease of access and investment flexibility that ETFs offer Bitcoin, increasing its attraction to experienced and new investors.
Additionally, the possible approval of a spot Ethereum ETF by the U.S. would trigger another strong wave, especially because Ethereum has yet to breach its previous all-time highs. Indeed, the launch of such a fund would breathe new life into the market, and Ethereum could revive and move well above its former pick prices.
The investment of BNY Mellon in Bitcoin ETFs has become a clear sign of the changing nature of financial investments, with larger institutions getting into the frame of digital assets as feasible investment channels. With the dynamics of the landscape shifting, the financial players observe, hoping to see the next steps in this digital finance revolution.
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