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Wells Fargo Creates Passive Bitcoin Fund for Rich Clients

According to seekingalpha.com media sites, Wells Fargo has registered with the US regulator for a passive Bitcoin fund to provide its wealthiest clients with an indirect vehicle for investing in cryptocurrencies.

 

The action, however, contradicts previous claims that the bank would launch an actively managed crypto fund. According to Business Insider, Wells Fargo began offering bitcoin exposure to its wealthiest clientele earlier this month. In May, the bank stated that its team was prepared to offer an actively managed crypto solution to its clients.

According to the SEC filing, Wells Fargo has collaborated on the Bitcoin offering with NYDIG and FS Investments. When clients invest in the FS NYIG Bitcoin fund, Wells Fargo will get certain fees. Asset management FS Investments and financial services firm New York Digital Investment Group (NYDIG) have previously collaborated on Bitcoin investment funds.

 

Wells Fargo had no sales of the new FS NYDIG Bitcoin fund as of Thursday, August 19.
During the same day, JPMorgan Chase & Co registered for a passive Bitcoin fund with the US Securities and Exchange Commission. According to the article, the bank has collaborated with NYDIG and will receive a share of sales through subsidiaries. JPMorgan’s Bitcoin fund has not completed any sales at the time of the filings.

Wells Fargo and JPMorgan have joined a growing list of investment banks that have offered crypto investments to clients, including Citigroup, Goldman Sachs, and Morgan Stanley, with the crypto move.

These large banks’ efforts to provide access to funds that allow Bitcoin ownership are a key step toward crypto adoption as an asset class. This demonstrates that bank clients want to be exposed to cryptocurrency.

 

In the past year, the rise of Bitcoin has put Wall Street corporations under pressure to consider investing in the emerging asset class. For the time being, large banks are only allowing their wealthiest clientele to access volatile assets.

In March, you’ll be able to access Bitcoin funds. Bitcoin is suitable for customers with a “aggressive risk tolerance” and at least $2 million in assets held by the bank, according to the bank.g