Wells Fargo, JPMorgan Set To Launch Passive Bitcoin Trusts

Wells Fargo and JPMorgan Chase both partnered with NYDIG for the launch of two passive bitcoin trusts, according to SEC filings.


Source: Shutterstock


key takeaways

  • In partnership with NYDIG, JPMorgan filed with the SEC to offer its passively managed bitcoin fund to in-house clients on August 19
  • Wells Fargo’s wealth and investment management arm oversees around $2 trillion in assets, as of May

Wells Fargo and JPMorgan both registered a passive bitcoin trust with the Security Exchange Commission on Thursday. The two mega-banks separately partnered with NYDIG for the trusts, according to SEC filings.

In JPMorgan’s case, NYDIG would hold the cryptocurrency while the bank would be used as a sales agent. The trust will allow its wealthiest client base to utilize its crypto investment vehicle. In Wells Fargo’s case, the bank will also be working with FS Investments on the offering.

Wells Fargo 

Wells Fargo said in a May report on “The investment rationale for cryptocurrencies” that it believes that cryptocurrencies have evolved into a viable investment asset. “There are over 9,000 cryptocurrencies, with $2.4 trillion in capitalization, and this depth and breadth allow additional analysis of their trends,” the report said. “Short-term factors suggest further deepening of the market. We believe long-term supply and demand trends support further industry growth, the potential for further compression in price volatility, and a possible role as portfolio diversifiers.”

However, this is not the first time the US financial institution has attempted to expand into digital asset investment services. In May, Wells Fargo announced that they would soon allow certain clients the opportunity to invest in crypto through their services.

Wells Fargo Investment Institute president Darrell Cronk said the bank will offer a“professionally managed solution” to its wealthiest clients in mid-June, according to an Insider interview. (Wells Fargo’s wealth and investment management arm oversees around $2 trillion in assets, as of May.)

“We think the cryptocurrency space has just kind of hit an evolution and maturation of its development that allows it now to be a viable investable asset,” Cronk said. 


In a partnership with NYDIG, JPMorgan also filed for a passive bitcoin trust with the SEC on Thursday. (NYDIG would hold the cryptocurrency while the massive bank would act  as their sales agent.)

JPMorgan originally became the first US mega-bank to give wealth management clients access to cryptocurrency funds through its advisors in June. Leading up to Thursday’s filing, the financial institution offered its passively managed bitcoin fund to in-house clients in early-August. This was two of many recent efforts by large financial institutions to try and adopt crypto-related services for their qualified clients.

NYDIG, the subsidiary of Stone Ridge Asset, gives BTC investment opportunities to banks, corporations and high net worth individuals. In June, NYDIG partnered with NCR to allow over 650 US banks and credit unions to soon offer cryptocurrency trading and bitcoin transactions to 24 million customers.

Following Thursday’s onslaught of bullish news, bitcoin was trading flat at $45,932.43 as of press time.

Want more investor-focused content on digital assets? Join us September 13th and 14th for the Digital Asset Summit (DAS) in NYC. Use code ARTICLE for $75 off your ticket. Buy it now.


Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

MON - WED, MARCH 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience:  Attend expert-led panel discussions and fireside chats  Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts   Grow your network […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Frax report cover.jpg


Frax saw continued development in its frxETH liquid staking derivative and Fraxlend money market throughout 2023. Frax V3 introduces an RWA strategy to drive utility to the protocol's cornerstone product, the FRAX stablecoin.


MicroStrategy discloses the purchase of 16,000 bitcoin throughout November


Digital asset firms face potential new regulatory landscape under Treasury’s proposed authority expansion


Uniswap Labs will be providing trading APIs to Talos investors through Fireblocks


DYDX supply will climb by up to 80% after the Friday unlock, but a couple factors make a massive sell-off appear unlikely


Switzerland-based Pando Asset, which has crypto products trading on the SIX Swiss Exchange, now looks to the US


Binance does not hold the required licenses to advertise and serve customers in the Philippines, the country’s securities regulator said