Katherine Ross

Ben Strack


<p>Wells Fargo and Bank of America’s Merrill have begun offering bitcoin ETFs to some of their wealth management clients.&nbsp;</p>



<p>Bloomberg first <a href="https://news.bloomberglaw.com/business-and-practice/bofas-merrill-wells-fargo-offer-bitcoin-etfs-to-wealth-clients">reported</a> the news, citing unnamed sources. </p>



<p>“Spot bitcoin ETFs are available for unsolicited purchases through an advisor with Wells Fargo Advisors or through our online WellsTrade platform,” a Wells Fargo spokesperson said.</p>



<p>Spokespeople for Bank of America’s Merrill arm didn’t immediately return requests for comment on the report. </p>



<p>Brokerage giants Fidelity and Charles Schwab started giving investors access to bitcoin ETFs after their launch on Jan. 11.&nbsp;</p>



<p>Vanguard, meanwhile, has called the investment case for cryptocurrencies “weak,” and users of its brokerage platform were blocked from buying and selling the funds.&nbsp;&nbsp;&nbsp;</p>



<p><strong>Read more:</strong><a href="https://blockworks.co/news/vanguard-disallows-bitcoin-etf-trading"><strong> </strong>As spot bitcoin ETF volumes soar, Vanguard is blocking such trades</a></p>



<p>“Unlike stocks and bonds, most crypto assets lack intrinsic economic value and generate no cash flows,” a Vanguard spokesperson previously told Blockworks. “And cryptocurrencies’ high volatility runs counter to our goal of helping investors generate positive real returns over the long term.”</p>



<p>Ric Edelman, founder of Edelman financial services, has said he expects <a href="https://blockworks.co/tag/bitcoin-etf">bitcoin ETFs</a> to ultimately see widespread availability from most registered investment advisers (RIAs) and brokerage firms.</p>



<p>But wirehouses — such as Morgan Stanley, Merrill Lynch and Wells Fargo — are likely to be slower to offer such funds, he noted last month.</p>



<p>“Big firms are engaging, but their bureaucracies move slowly,” Edelman said Thursday. “Investment committees, and compliance and risk management officers, aren’t going to capitulate to pressure from the sales and marketing teams.”</p>



<p>On Wednesday, CoinDesk <a href="https://www.coindesk.com/business/2024/02/28/morgan-stanley-evaluating-spot-bitcoin-etfs-for-its-giant-brokerage-platform-sources/">reported</a> that Morgan Stanley was looking into offering bitcoin ETFs to some customers. A spokesperson for Morgan Stanley declined to comment on the report.&nbsp;</p>



<p>In January, a separate section of Wells Fargo — Wells Fargo Advisors — began offering bitcoin ETFs to customers. However, clients specifically had to seek out such products, according to a <a href="https://www.investmentnews.com/wirehouses/news/wells-fargo-advisors-to-sell-new-bitcoin-etfs-247991">report</a> from Investment News.&nbsp;</p>



<p><a href="https://blockworks.co/news/btc-etf-volumes-soar-blackrock">Bitcoin ETFs have put up record numbers this week</a>, notching new highs for both trade volume and net inflows as bitcoin hovers around $60,000.</p>



<p><strong>Read more:</strong> <a href="https://blockworks.co/news/bitcoin-etf-inflows-new-peak">Bitcoin ETF inflows hit new peak Wednesday amid BTC price climb</a></p>



<p>The clear investor demand for these products has convinced some firms they need to offer them to their clients, Edelman noted.&nbsp;</p>



<p>“The demand, along with rapidly rising prices, are spurring firms to accelerate their activities,” he told Blockworks. “Every day they don’t let their advisers allocate, they get complaints from both reps and clients, which serves nobody’s best interests.”</p>



<p><em>Updated Feb. 29, 2024 at 2:05 pm ET: Added comment from Wells Fargo.</em></p>



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<p><strong>Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.</strong></p>



<p><strong>Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. <a href="https://blockworks.co/newsletter/onthemargin">Subscribe to the Forward Guidance newsletter</a>.</strong></p>



<p><strong>Get alpha directly in your inbox with the <a href="https://blockworks.co/newsletter/research">0xResearch newsletter</a> — market highlights, charts, degen trade ideas, governance updates, and more.</strong></p>



<p><strong>The Lightspeed newsletter is all things Solana, in your inbox, every day. <a href="https://blockworks.co/newsletter/lightspeed">Subscribe to daily Solana news</a> from Jack Kubinec and Jeff Albus.</strong></p>


Wells Fargo, Merrill to offer bitcoin ETFs to wealth management clients: Bloomberg

<div id="highlights-block_6305da3019f27" class="highlights">
        <ul>
                <li>Peter Eliades says he looks to expand on Floating Point Group’s existing presence across 50 institutional accounts </li>
                <li>The executive spent the last three years as head of electronic sales and trading at Wells Fargo</li>
            </ul>
    
</div>



<p>A traditional finance (TradFi) veteran with more than two decades of experience at bulge-bracket banks JPMorgan and Wells Fargo is jumping into crypto.</p>



<p>Digital assets prime brokerage <a href="https://www.floating.group" target="_blank" rel="noreferrer noopener">Floating Point Group</a> has tapped <a href="https://www.linkedin.com/in/peter-eliades-38a8978/" target="_blank" rel="noreferrer noopener">Peter Eliades</a> — who last headed electronic trading sales for Wells Fargo — to oversee business development in the US and throughout Asia Pacific.&nbsp;&nbsp;</p>



<p>Eliades told Blockworks that the influence of cryptocurrency across “traditional media, sports, sponsorship [and] gaming” has become “increasingly evident.” The growing influence of digital assets in traditional spheres “by extension woke [Eliades] to the possibility of exploring something new and innovative,” he said.&nbsp;</p>



<p>The executive’s focus on crypto stemmed from investing personal capital in a bid to “learn more about the benefits of digital markets and their pain points.”</p>



<p>Eliades was a vice president at Lehman Brothers in 2001,&nbsp; before becoming a managing director at Bear Stearns &amp; Co. about four years later. He went on to work for JPMorgan as head of Americas trading before joining Wells Fargo, and now looks to make a splash in crypto.</p>



<p>&#8220;[Eliades] has built world-class electronic trading businesses for decades and understands the role that crypto will play in shaping the future of global financial systems,” Floating Point CEO John Peurifoy said in a statement.</p>


<div class="wp-block-image">
<figure class="alignright size-large is-resized"><img loading="lazy" decoding="async" src="https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Pete-Eliades-683x1024.jpg" alt="" class="wp-image-28959" width="273" height="410" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Pete-Eliades-683x1024.jpg?w=683 683w, https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Pete-Eliades-683x1024.jpg?w=200 200w, https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Pete-Eliades-683x1024.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Pete-Eliades-683x1024.jpg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Pete-Eliades-683x1024.jpg?w=1365 1365w, https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Pete-Eliades-683x1024.jpg?w=171 171w, https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Pete-Eliades-683x1024.jpg?w=174 174w, https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Pete-Eliades-683x1024.jpg?w=146 146w, https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Pete-Eliades-683x1024.jpg?w=53 53w, https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Pete-Eliades-683x1024.jpg?w=33 33w, https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Pete-Eliades-683x1024.jpg?w=1707 1707w" sizes="(max-width: 273px) 100vw, 273px" /><figcaption>Peter Eliades, Floating Point&#8217;s new hire</figcaption></figure></div>


<p>Joining Floating Point was a particularly easy transition, he added, as Eliades has consulted for the company since 2018. The firm was founded that year and is backed by firms including Coinbase’s venture arm, Naval Ravikant and Tribe Capital.</p>



<p>Eliades said he is focused on helping Floating Point earn client trust and establish itself as “critical subject matter experts who help bridge the gap between crypto-natives and TradFi firms.”&nbsp;</p>



<p>He highlighted the company’s global execution desk that can handle flexible order instructions and execute on a customer’s behalf. Though common in TradFi with equity and options markets, Eliades said, such capabilities are still fairly elusive in crypto.&nbsp;</p>



<p>“We see it as our first touch point to help bring asset managers into the space and it&#8217;s the service they’re all looking for first before they get more complicated with their operations,” the new head of distribution said.&nbsp;&nbsp;</p>



<p>The hire of Eliades comes after the company revealed the <a href="https://www.prnewswire.com/news-releases/floating-point-group-releases-flowvault-a-cryptocurrency-settlement--transfers-platform-for-exchange-based-trading-301559304.html" target="_blank" rel="noreferrer noopener">launch of FlowVault</a> in June. The service offers a console- and API-based management of assets across exchanges via a single account.</p>



<p>“That gives us a really exciting springboard to branch out into giving them the same smooth secure access into DeFi and other critical partnerships with trading solutions and OTC liquidity aggregators,” the executive added. </p>



<p>“[This allows] clients to not only see and manage their assets but also trade, stake, store and leverage across the many options that are opening up to our crypto world.”</p>



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<p><strong>Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.</strong></p>



<p><strong>Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. <a href="https://blockworks.co/newsletter/onthemargin">Subscribe to the Forward Guidance newsletter</a>.</strong></p>



<p><strong>Get alpha directly in your inbox with the <a href="https://blockworks.co/newsletter/research">0xResearch newsletter</a> — market highlights, charts, degen trade ideas, governance updates, and more.</strong></p>



<p><strong>The Lightspeed newsletter is all things Solana, in your inbox, every day. <a href="https://blockworks.co/newsletter/lightspeed">Subscribe to daily Solana news</a> from Jack Kubinec and Jeff Albus.</strong></p>


Crypto Prime Brokerage Enlists Former Wells Fargo, JPMorgan Exec

Sebastian Sinclair

<div id="highlights-block_6201b5e5dc738" class="highlights">
        <ul>
                <li>The banking giant, which handles around $1.9 trillion in assets, said crypto should be approached through professionally managed private placements</li>
                <li>Wells Fargo said it did not recommend crypto mutual funds, ETFs, grantor trusts and &#8220;individual cryptocurrency speculation&#8221;</li>
            </ul>
    
</div>



<p>Multinational financial services and banking giant Wells Fargo told investors Monday it did not think it was too early to get skin in the game for cryptocurrency investments.</p>



<p>In a <a href="https://saf.wellsfargoadvisors.com/emx/dctm/Research/wfii/wfii_reports/Investment_Strategy/cryptocurrency020722.pdf" target="_blank" rel="noreferrer noopener">report</a> from the bank&#8217;s Global Investment Strategy Team, Wells Fargo said crypto users are growing rapidly around the world. Crypto appears to be near a &#8220;hyper-adoption phase,&#8221; similar to that of the internet during the mid-to-late 1990s.</p>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"><p><strong>&#8220;We believe that cryptocurrencies are viable investments today, even though they remain in the early stages of their investment evolution,&#8221; the company said.</strong></p></blockquote>



<p>The bank is making a recommendation to investors to approach crypto investments through professionally managed private placements, telling them to be &#8220;patient&#8221; while the industry continues to mature.</p>



<p>&#8220;We do not recommend any of the other current investment options, such as mutual funds, ETFs, grantor trusts and individual cryptocurrency speculation,&#8221; Wells Fargo said. The company added it was &#8220;hopeful&#8221; 2022 would bring about greater clarity on the regulatory front which could lead to &#8220;higher quality&#8221; investments.</p>



<p>Wells Fargo also said it did not subscribe to the “too late to invest” argument new investors feel when they first start poking around digital assets. That&#8217;s because performance numbers for most crypto are skewed as they&#8217;ve grown from &#8220;virtually zero,&#8221; according to the report.</p>



<p>The bank also points to crypto being a nascent industry and &#8220;relatively young investment space&#8221; with a large majority of projects being fewer than five years old.</p>



<h3 class="wp-block-heading">Taking a page from the internet</h3>



<p>Wells Fargo believes crypto is “early, but not too early,” in the investment stage, highlighting the need for investor education while also pointing to crypto&#8217;s adoption rates similar to that of the internet during the turn of the century.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="562" height="337" src="https://blockworks-co.imgix.net/wp-content/uploads/2022/02/2022-02-08-wells-fargo-research.jpg" alt="" class="wp-image-16969" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2022/02/2022-02-08-wells-fargo-research.jpg?w=562 562w, https://blockworks-co.imgix.net/wp-content/uploads/2022/02/2022-02-08-wells-fargo-research.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2022/02/2022-02-08-wells-fargo-research.jpg?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2022/02/2022-02-08-wells-fargo-research.jpg?w=435 435w, https://blockworks-co.imgix.net/wp-content/uploads/2022/02/2022-02-08-wells-fargo-research.jpg?w=365 365w, https://blockworks-co.imgix.net/wp-content/uploads/2022/02/2022-02-08-wells-fargo-research.jpg?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2022/02/2022-02-08-wells-fargo-research.jpg?w=50 50w" sizes="(max-width: 562px) 100vw, 562px" /><figcaption>Internet usage history versus crypto users; <em>Sources: International Telecommunication Union, Our World in Data, Crypto.com, Statista, Bloomberg and Wells Fargo Investment Institute</em></figcaption></figure></div>



<p>The research draws parallels to the internet&#8217;s performance in the late &#8217;90s and its technology S curve when the web&#8217;s use surged from 77 million in 1996 to 412 million in 2000. The bank believes crypto may have reached an adoption inflection point that bears resemblance to where the internet was back then.</p>



<p>The chart above, as published in the report, compares the global adoption rate of the internet beginning in 1993 and crypto users beginning in 2014.</p>



<p>&#8220;Based on this comparison alone, it appears that cryptocurrency use today may even be a little ahead of the mid-to-late 1990s internet,&#8221; the bank said.</p>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"><p><strong>&#8220;Precise numbers aside, there is no doubt that global cryptocurrency adoption is rising, and could soon hit a hyper-inflection point.&#8221;</strong></p></blockquote>



<p>Wells Fargo is no stranger to the crypto industry. Its report adds to musings penned last year when it called crypto a &#8220;<a href="https://cms.blockworks.co/wells-fargo-unveils-crypto-strategy-after-all/" target="_blank" rel="noreferrer noopener">viable investment asset</a>&#8221; and said it would begin offering a &#8220;professionally managed solution” to its wealthiest clients. The banking giant followed up by registering a <a href="https://cms.blockworks.co/wells-fargo-jpmorgan-set-to-launch-passive-bitcoin-trusts/" target="_blank" rel="noreferrer noopener">passive bitcoin trust</a> with the US Securities and Exchange Commission in August.</p>



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<p><strong>Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.</strong></p>



<p><strong>Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. <a href="https://blockworks.co/newsletter/onthemargin">Subscribe to the Forward Guidance newsletter</a>.</strong></p>



<p><strong>Get alpha directly in your inbox with the <a href="https://blockworks.co/newsletter/research">0xResearch newsletter</a> — market highlights, charts, degen trade ideas, governance updates, and more.</strong></p>



<p><strong>The Lightspeed newsletter is all things Solana, in your inbox, every day. <a href="https://blockworks.co/newsletter/lightspeed">Subscribe to daily Solana news</a> from Jack Kubinec and Jeff Albus.</strong></p>


Wells Fargo: Cryptos Like Internet in Late ’90s, Nearing ‘Hyper Adoption Phase’

<div id="highlights-block_61b7b42b719c2" class="highlights">
        <ul>
                <li>Both banks will use Baton Systems’ Core-FX distributed ledger technology </li>
                <li>Technology allows the bank to settle funds on-demand with HSBC in more currencies than CLS Group allows, according to co-head of macro at Wells Fargo Corporate and Investment Bank</li>
            </ul>
    
</div>



<p>Wells Fargo and HSBC are using blockchain technology for the first time in the settlement process of cross-border payments.</p>



<p>The two financial services titans will jointly use a shared settlement ledger to process US dollar, Canadian dollar, British pound sterling and Euro transactions, the firms announced Monday.&nbsp;</p>



<p>The companies have plans to extend the platform to settle additional currencies and could choose to add more participants, introducing a central Financial Market Infrastructure provider.</p>



<p>The platform runs on <a href="https://batonsystems.com" target="_blank" rel="noreferrer noopener">Baton Systems</a>’ Core-FX distributed ledger technology.</p>



<p>Adopters of the technology are no longer restricted by currency-specific cut-off times and can agree with their counterparties on when and how often they settle. It allows for multiple settlements a day and a settlement process that can be completed in three minutes.</p>



<p>Riskless settlement, or payment-versus-payment (PvP) settlement, has previously only been achievable with legally enforceable settlement finality through <a href="https://www.cls-group.com/products/settlement/clssettlement/">CLS</a><a href="https://www.cls-group.com/products/settlement/clssettlement/" target="_blank" rel="noreferrer noopener"> </a><a href="https://www.cls-group.com/products/settlement/clssettlement/">Group</a>.</p>



<p>Market participants prefer to settle via PvP because the currencies are simultaneously settled — eliminating the risk of a firm having made a payment to a counterparty that then defaults on its obligations, said Alex Knight, head of EMEA at Baton Systems</p>



<p>But access to PvP settlement through CLS is restricted to CLS member firms and only available across 18 currencies, he explained.</p>



<p>“Today’s announcement means that all [foreign exchange] businesses can now access PvP settlement protection across all currencies,” Knight told Blockworks. “We’ve used distributed ledger technology to achieve this, delivering a level of transformation that’s well overdue.”</p>



<h3 class="wp-block-heading"><strong>Traditional finance embracing the space?</strong></h3>



<p>Banks currently transmit files to CLS and then get funds settled the next day between accounts held at CLS, said Mark Jones, co-head of macro at Wells Fargo Corporate &amp; Investment Bank, adding that the funds are held up during the waiting period. </p>



<p>“This new technology would allow us to settle funds on-demand with HSBC in any array of currencies we choose,” Jones told Blockworks. &#8220;[It] also provides greater visibility into transactions and funds flow because both of our operations teams at [Wells Fargo] and HSBC are utilizing the same dashboard at the same time.”</p>



<p>Large banks sharing technology infrastructure with shared transaction visibility is a new concept, the Wells Fargo executive added.&nbsp;</p>



<p>David Tawil, president of multi-strategy crypto asset fund ProChain Capital, said that banks that do not look to implement blockchain and accept cryptocurrency more broadly could be hurt over the long term.</p>



<p>“I know that right now it’s incredibly difficult for those banks to participate in cryptocurrency broadly because of the lack of regulation,” he said. “But certainly there should be education and development going on inside of those banks to be able to act and get involved once they are allowed to.”</p>



<p>Tawil argued that financial institutions should work together to figure out how they can use blockchain technology collectively to facilitate transactions and perform other processes across their systems.&nbsp;&nbsp;</p>



<p>“Right now the decentralized aspect of this is a runaway train without them,” he noted. “If they don’t have a pre-planned way to go ahead and transition to getting onto that locomotive, they certainly could be left behind.”</p>



<p>Knight said that Baton Systems is in discussions with nearly all of the large foreign exchange banks about its technology, noting that some are evaluating its impact on their businesses.</p>



<h3 class="wp-block-heading"><strong>Continuing to adopt</strong></h3>



<p>Mark Williamson, global head of FX partnerships and propositions at HSBC, said in a statement that the firm will continue to grow its FX Everywhere network, which has settled roughly 3 million intra-bank trades worth about $2.5 trillion since it launched in 2018. </p>



<p>HSBC also intends to position itself to be able to transact in new forms of regulated digital currencies, such as central bank digital currencies (CBDCs), he added.</p>



<p>Wells Fargo labeled cryptocurrencies as a “viable investment asset” <a href="https://www.wellsfargoadvisors.com/research-analysis/reports/rationale-cryptocurrencies.htm" target="_blank" rel="noreferrer noopener">in a report</a> published earlier this year. It noted that crypto could see continued growth, further compression in price volatility and a possible role as portfolio diversifiers over the long term.</p>



<p>“We are now utilizing blockchain technology, and expect that trend to continue to grow,” Jones told Blockworks. “As it relates to the crypto ecosystem, it’s clearly evolving fast and we are paying close attention to how the regulatory structure unfolds around it.”</p>



<hr class="wp-block-separator"/>



<p><strong>Get the day’s top crypto news and insights delivered to your inbox every evening.&nbsp;<a href="https://cms.blockworks.co/newsletter/?source=end" target="_blank" rel="noreferrer noopener">Subscribe to Blockworks’ free newsletter</a>&nbsp;now.</strong></p>



<hr class="wp-block-separator"/>


Wells Fargo and HSBC to Use Blockchain Tech to Settle Transactions

Jacquelyn Melinek

<div id="highlights-block_616456c209801" class="highlights">
        <ul>
                <li>“Interest in crypto continues to grow at pace, and it’s clear that banks and tech companies have recognized that crypto is an inevitable part of our future finance and tech ecosystems,” Maini said</li>
                <li>The London-based company provides services to traditional financial institutions, FinTechs, crypto businesses and government agencies</li>
            </ul>
    
</div>



<p>Elliptic, a blockchain analytics and crypto compliance company, raised $60 million in a Series C funding round led by Evolution Equity Partners, the company said in a statement Monday.&nbsp;</p>



<p>The round included new investment from SoftBank Vision Fund 2 and included existing investors Wells Fargo Strategic Capital, AlbionVC, Digital Currency Group, Octopus Ventures, SBI Group, SignalFire and Paladin Capital Group.</p>



<p>“Interest in crypto continues to grow at pace, and it’s clear that banks and tech companies have recognized that crypto is an inevitable part of our future finance and tech ecosystems,” Simone Maini, CEO of Elliptic, said to Blockworks in an email. </p>



<p>The fundraise will be used to help the company capitalize on this growing momentum and interest in the space through team expansion and product development, Maini said.</p>



<p>The London-based company provides services to traditional financial institutions, FinTechs, crypto businesses and government agencies. To date, it has raised $100 million and is on track for 100% year over year growth in revenue by early 2022, Maini said.</p>



<p>Elliptic was founded in 2013, and in the span of eight years, the crypto landscape has changed dramatically, Maini said. According to its <a href="https://www.elliptic.co/" target="_blank" rel="noreferrer noopener">website</a>, the business has over 100 customers across 29 countries and about ⅔, or 66%, of crypto volume runs through exchanges using Elliptic, which provides more than 100 crypto assets and over 10 billion data points. </p>



<p>“Awareness, excitement, innovation and regulatory clarity have all grown considerably and this has changed the investment landscape for us at the same time,” Maini said. “We’ve been committed to bringing about mainstream crypto adoption for many years and that clarity of purpose has served us well,” she added. </p>



<hr class="wp-block-separator"/>



<p><strong><br>Are you a UK or EU reader that can&#8217;t get enough investor-focused content on digital assets? <a target="_blank" href="https://cms.blockworks.co/events/das-london/" rel="noreferrer noopener">Join us</a> in London on November 15th and 16th for the Digital Asset Summit (DAS) London. Use code ARTICLE for £75 off your ticket. <a target="_blank" href="https://cms.blockworks.co/events/das-london/" rel="noreferrer noopener">Buy it now</a>.</strong></p>



<hr class="wp-block-separator"/>


Blockchain Analytics Firm Elliptic Raises $60M SoftBank, Wells Fargo, More

Morgan Chittum

<div id="highlights-block_60c9fc7f1690b" class="highlights">
        <ul>
                <li>Cardano’s return on investment has jumped 113.53% in the past month.</li>
                <li>Coinbase announced they would bring $500 million in crypto assets to their balance sheet</li>
            </ul>
    
</div>



<p>Cardano’s ADA token advanced almost 20% ahead of its smart contract upgrade, the Alonzo hard fork. Charles Hoskinson, who helped launch Cardano in 2015, said the altcoin’s upgrade should begin on September 12. After Hoskinson announced a set date for Alonzo, the token hiked up even more.&nbsp;</p>



<p>ADA dethroned binance coin BNB as the third-largest crypto by market capitalization early Friday morning, hitting its all-time high of $2.54. ADA’s market cap is $80.25B while BNB’s remained at $75.66B, according to Messari.</p>



<p>United Wholesale Mortgage, the second-largest US mortgage lender, plans to start accepting bitcoin as a form of payment later this year, the CEO said in a recent <a href="https://www.freep.com/story/money/business/2021/08/16/uwm-pontiac-mortgage-lender-sees-growth-start-accepting-bitcoin/8150026002/" target="_blank" rel="noreferrer noopener">interview</a>. Coinbase announced they would bring $500 million in crypto assets to their balance sheet and allocate 10% of its quarterly net income into a portfolio of crypto assets as well, Blockworks <a href="https://cms.blockworks.co/coinbases-500m-crypto-investment-is-a-game-to-attract-users-sources-say/" target="_blank" rel="noreferrer noopener">reported.</a></p>



<p>Bitcoin and ethereum made gains of roughly 4% and 3% on-day, according to Messari. Bitcoin faces resistance around $50,000 after surpassing its 200-day moving average earlier this month.</p>



<p>Ethereum continues its upward trend following the launch of the London hark fork. Approximately $223,533,215.45 worth of ether has been burned, as of Friday afternoon. ETH has a return on investment of 63.60% over the past month.</p>



<p>The VIX, a measure of volatility in the market, fell 12.37% as of press time. </p>



<h3 class="wp-block-heading">DeFi</h3>



<ul class="wp-block-list"><li>Uniswap is trading at $28.40 with a total value locked of $4,771,186,114 up 3.4% in 24 hours at 4:00 pm ET.&nbsp;</li><li>Chainlink is trading at $26.79, advancing 4.1% with trading volume at $1,466,243,034 in 24 hours at 4:00 pm ET.</li><li>DeFi:ETH is 33.2% at 4:00 pm ET.</li></ul>



<h3 class="wp-block-heading">Crypto</h3>



<ul class="wp-block-list" id="block-1209f037-00c3-4876-ad37-a29ab610c717"><li>Bitcoin is trading around $48,492.35, up 3.76% in 24 hours at 4:00 pm ET.</li><li>Ether is trading around $3,236.53, advancing 2.78% in 24 hours at 4:00 pm ET.</li><li>ETH:BTC is at 0.066, down -1.96% at 4:00 pm ET.</li><li>VIX is down 12.41% to 21.52 at 4:00 pm ET.</li></ul>



<h3 class="wp-block-heading">Insight</h3>



<p>&#8220;Institutional tailwinds continue to be a driving force for positive sentiment in the market. In the last 24 hours alone, Coinbase announced commitments to add $500 million in crypto assets to their balance sheet, BlackRock disclosed material ownership in a number of crypto mining companies through $380+ million in investments, and the second-largest US mortgage lender, United Wholesale Mortgage, announced they will accept payment in bitcoin,&#8221; <a href="https://www.clear-block.io/" target="_blank" rel="noreferrer noopener">Clearblock Insights</a> co-founder Cody Ryan said to Blockworks. &#8220;We believe these to be clear indicators of underlying strength in the market cycle.&#8221;</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="862" height="443" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/08/8FD7437C-87E6-4E06-9328-164720F7D951.jpeg" alt="" class="wp-image-6856" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/08/8FD7437C-87E6-4E06-9328-164720F7D951.jpeg?w=862 862w, https://blockworks-co.imgix.net/wp-content/uploads/2021/08/8FD7437C-87E6-4E06-9328-164720F7D951.jpeg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/08/8FD7437C-87E6-4E06-9328-164720F7D951.jpeg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/08/8FD7437C-87E6-4E06-9328-164720F7D951.jpeg?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/08/8FD7437C-87E6-4E06-9328-164720F7D951.jpeg?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/08/8FD7437C-87E6-4E06-9328-164720F7D951.jpeg?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/08/8FD7437C-87E6-4E06-9328-164720F7D951.jpeg?w=80 80w" sizes="(max-width: 862px) 100vw, 862px" /><figcaption>Cardano&#8217;s ADA token trading over the past week. Source: TradingView</figcaption></figure></div>



<h3 class="wp-block-heading">Equities</h3>



<ul class="wp-block-list"><li>The Dow was up 0.59% to 35,099.</li><li>S&amp;P 500 advanced 0.72% to 4,437.</li><li>Nasdaq was up 1.05% to 14,694.</li></ul>



<h3 class="wp-block-heading">Commodities</h3>



<ul class="wp-block-list" id="block-d64d70c9-7052-4f1a-8167-3d370fe08354"><li>Brent crude fell to $65.10 per barrel, declining -2.02%.</li><li>Gold was up 0.06% to $1,784.</li></ul>



<h3 class="wp-block-heading">Fixed Income</h3>



<ul class="wp-block-list"><li>US 10-year treasury yields 1.26% as of 4:00 pm ET.</li></ul>



<h3 class="wp-block-heading">Currencies</h3>



<ul class="wp-block-list"><li>The US dollar fell -0.07%, according to the Bloomberg Dollar Spot Index.</li></ul>



<h3 class="wp-block-heading">In other news&#8230;</h3>



<p>GlobalX has plans to launch a crypto blended ETF, a SEC disclosure on Thursday revealed. The Global X Blockchain &amp; Bitcoin Strategy, will invest 80% of its net assets in digital assets funds, bitcoin futures contracts listed in the US and more, Blockworks <a href="https://cms.blockworks.co/global-x-opts-to-try-to-bring-blended-crypto-etf-to-market/" target="_blank" rel="noreferrer noopener">reported.</a></p>



<p>That&#8217;s it for today&#8217;s markets wrap. I&#8217;ll see you back here on Monday.</p>



<p><strong><em>Want more investor-focused content on digital assets?&nbsp;<a target="_blank" href="https://cms.blockworks.co/events/digital-asset-summit-2021-2/" rel="noreferrer noopener">Join us</a>&nbsp;September 13th and 14th for the Digital Asset Summit (DAS) in NYC. Use code ARTICLE for $75 off your ticket.&nbsp;<a target="_blank" href="https://cms.blockworks.co/events/digital-asset-summit-2021-2/" rel="noreferrer noopener">Buy it now</a>.</em></strong></p>


Cardano’s ADA Token Hits All-Time High: Markets Wrap

<div id="highlights-block_60c9fc7f1690b" class="highlights">
        <ul>
                <li>Galaxy Digital partnered with Bloomberg to launch a new institutional DeFi fund</li>
                <li>JPMorgan and Wells Fargo are both set to launch passive bitcoin funds, SEC filings revealed</li>
            </ul>
    
</div>



<p>Equities were mixed as investors assessed inflationary concerns and remarks from Federal Reserve officials on Thursday. Fed officials said tapering back bond purchases may start as early as this year, <a href="https://cms.blockworks.co/most-fed-officials-say-inflation-goal-met-tapering-to-start-this-year/">FOMC minutes</a> Wednesday indicated. Many meeting participants “saw benefits in reducing the pace of net purchases of Treasury securities and agency mortgage-backed securities proportionally,” the minutes revealed.</p>



<p>In major Wall Street indices, big market winners include massive retail chain Macy&#8217;s Inc. whose shares jumped 22.8% mid-day.&nbsp;</p>



<h3 class="wp-block-heading">Equities</h3>



<ul class="wp-block-list"><li>The Dow was down -0.19% to 34,894.</li><li>S&amp;P 500 advanced 0.13% to 4,405.</li><li>Nasdaq was up 0.11% to 14,551.</li></ul>



<h3 class="wp-block-heading">Insight</h3>



<p>“There are risk-off money flows across asset classes this morning as investors fear that central banks are poised to tighten policy into a global economic slowdown this fall,” said Tom Essaye, President of Sevens Report Research, in a note. “This week’s options expiration is likely amplifying the volatility this morning.”</p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="545" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/08/75AA5B5C-C5D0-41B2-AA67-B9B7C47DD3AA-1024x545.jpeg" alt="" class="wp-image-6837" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/08/75AA5B5C-C5D0-41B2-AA67-B9B7C47DD3AA-1024x545.jpeg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/08/75AA5B5C-C5D0-41B2-AA67-B9B7C47DD3AA-1024x545.jpeg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/08/75AA5B5C-C5D0-41B2-AA67-B9B7C47DD3AA-1024x545.jpeg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/08/75AA5B5C-C5D0-41B2-AA67-B9B7C47DD3AA-1024x545.jpeg?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/08/75AA5B5C-C5D0-41B2-AA67-B9B7C47DD3AA-1024x545.jpeg?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/08/75AA5B5C-C5D0-41B2-AA67-B9B7C47DD3AA-1024x545.jpeg?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/08/75AA5B5C-C5D0-41B2-AA67-B9B7C47DD3AA-1024x545.jpeg?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/08/75AA5B5C-C5D0-41B2-AA67-B9B7C47DD3AA-1024x545.jpeg?w=1064 1064w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>S&amp;P. 500, The Dow Jones Industrial Average and Nasdaq Composite trading year to date. Source: TradingView</figcaption></figure></div>



<p>Bitcoin and ethereum traded flat on Wednesday following a mixed bag of crypto-related institutional news, advancing roughly 5% on-day.</p>



<p><a href="https://sec.report/Document/0001878304-21-000001/" target="_blank" rel="noreferrer noopener">JPMorgan Chase</a> and Wells Fargo are both set to launch passive bitcoin funds, SEC filings on Thursday revealed. Both banks will be partnering with NYDIG, signaling further institutional adoption for cryptocurrencies, Blockworks <a href="https://cms.blockworks.co/wells-fargo-jpmorgan-set-to-launch-passive-bitcoin-trusts/" target="_blank" rel="noreferrer noopener">reported.</a></p>



<p>Former SEC chair Jay Clayton joined Fireblocks advisory board, where he will help the company understand traditional markets infrastructure and how digital assets can best fit in the existing system, Blockworks <a href="https://cms.blockworks.co/former-sec-chairman-jay-clayton-joins-crypto-platform-fireblocks/" target="_blank" rel="noreferrer noopener">reported</a>.  Clayton, who served as chairman from 2017 to 2020, told Blockworks that digitization “is going to come to many of our processes, it’s going to enable new products, like some of the crypto assets you see, but it’s also going to add efficiencies and resiliency to more traditional forms of finance.&#8221;</p>



<p>In other news, the Security Exchange Commission (SEC) could look to regulate DeFi projects in the future, Blockworks <a href="https://cms.blockworks.co/sec-reportedly-could-look-to-regulate-defi-projects/" target="_blank" rel="noreferrer noopener">reported</a>. SEC Chairman Gary Gensler said that DeFi projects that reward participants with digital tokens could be considered as necessary activity to be regulated, according to the Wall Street Journal. The Chairman said that “the American public is buying, selling, and lending crypto on these trading, lending, and DeFi platforms, and there are significant gaps in investor protection.”</p>



<p>In other price action, cardano and polkadot both made made gains of over 12% on Thursday.</p>



<h3 class="wp-block-heading">DeFi</h3>



<ul class="wp-block-list"><li>Uniswap is trading at $27.43 with a total value locked of $4,765,744,171 up 3.4% in 24 hours at 4:00 pm ET.&nbsp;</li><li>Chainlink is trading at $26.79, advancing 4.1% with trading volume at $1,466,243,034 in 24 hours at 4:00 pm ET.</li><li>DeFi:ETH is 33.4% at 4:00 pm ET.</li></ul>



<h3 class="wp-block-heading">Crypto</h3>



<ul class="wp-block-list" id="block-1209f037-00c3-4876-ad37-a29ab610c717"><li>Bitcoin is trading around $46,504.48, up 4.4% in 24 hours at 4:00 pm ET.</li><li>Ether is trading around $3,150.24, advancing 4.72% in 24 hours at 4:00 pm ET.</li><li>ETH:BTC is at 0.067, up 0.44% at 4:00 pm ET.</li><li>VIX is down 0.19% to 21.52 at 4:00 pm ET.</li></ul>



<h3 class="wp-block-heading">Commodities</h3>



<ul class="wp-block-list" id="block-d64d70c9-7052-4f1a-8167-3d370fe08354"><li>Brent crude fell to $67.71 per barrel, declining -1.88%.</li><li>Gold was up 0.02% to $1,786.20.</li></ul>



<h3 class="wp-block-heading">Fixed Income</h3>



<ul class="wp-block-list"><li>US 10-year treasury yields 1.242% as of 4:00 pm ET.</li></ul>



<h3 class="wp-block-heading">Currencies</h3>



<ul class="wp-block-list"><li>The US dollar strengthened 0.46%, according to the Bloomberg Dollar Spot Index.</li></ul>



<h3 class="wp-block-heading">In other news&#8230;</h3>



<p>Galaxy Digital launched a new institutional decentralized finance (DeFi) fund, partnering with Bloomberg to announce their fourth index together. However, this time the fund will focus on the DeFi space, Blockworks <a href="https://cms.blockworks.co/galaxy-digital-launches-new-institutional-defi-fund/" target="_blank" rel="noreferrer noopener">reported.</a> The index will include tokens like Aave, Maker, Compound, Uniswap and Sushi.</p>



<h3 class="wp-block-heading">We&#8217;re watching out for&#8230;</h3>



<ul class="wp-block-list"><li>Hours of wage and salary workers on non-farm payrolls will be on Friday.</li></ul>



<p>That&#8217;s it for today&#8217;s markets wrap. I&#8217;ll see you back here tomorrow.</p>



<p><strong><em>Want more investor-focused content on digital assets?&nbsp;<a target="_blank" href="https://cms.blockworks.co/events/digital-asset-summit-2021-2/" rel="noreferrer noopener">Join us</a>&nbsp;September 13th and 14th for the Digital Asset Summit (DAS) in NYC. Use code ARTICLE for $75 off your ticket.&nbsp;<a target="_blank" href="https://cms.blockworks.co/events/digital-asset-summit-2021-2/" rel="noreferrer noopener">Buy it now</a>.</em></strong></p>


Equities Trade Sideways Amid Tapering Talk: Markets Wrap

<div id="highlights-block_611e8c48f1813" class="highlights">
        <ul>
                <li>In partnership with NYDIG, JPMorgan filed with the SEC to offer its passively managed bitcoin fund to in-house clients on August 19</li>
                <li>Wells Fargo’s wealth and investment management arm oversees around $2 trillion in assets, as of May</li>
            </ul>
    
</div>



<p>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 <a href="https://sec.report/Document/0001878304-21-000001/" target="_blank" rel="noreferrer noopener">SEC filings.</a></p>



<p>In <a href="https://sec.report/Document/0001878304-21-000001/" target="_blank" rel="noreferrer noopener">JPMorgan</a>’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.</p>



<p><strong>Wells Fargo&nbsp;</strong></p>



<p>Wells Fargo said in a May report on “<a href="https://www.wellsfargoadvisors.com/research-analysis/reports/rationale-cryptocurrencies.htm" target="_blank" rel="noreferrer noopener">The investment rationale for cryptocurrencies</a>” 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.”</p>



<p>However, this is not the first time the US financial institution has attempted to expand into digital asset investment services. In May, Wells Fargo <a href="https://cms.blockworks.co/wells-fargo-unveils-crypto-strategy-after-all/" target="_blank" rel="noreferrer noopener">announced</a> that they would soon allow certain clients the opportunity to invest in crypto through their services.</p>



<p>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 <a href="https://www.businessinsider.com/crypto-investing-wells-fargo-to-add-fund-to-platform-bitcoin-2021-5?r=US&amp;IR=T#" target="_blank" rel="noreferrer noopener">Insider</a> interview. (Wells Fargo’s wealth and investment management arm oversees around $2 trillion in assets, as of May.)</p>



<p>“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.&nbsp;</p>



<p><strong>JPMorgan</strong></p>



<p>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&nbsp; as their sales agent.)</p>



<p>JPMorgan originally became <a href="https://cms.blockworks.co/jpmorgan-reportedly-to-allow-clients-to-access-crypto-funds/">the first US </a><a href="https://cms.blockworks.co/jpmorgan-reportedly-to-allow-clients-to-access-crypto-funds/" target="_blank" rel="noreferrer noopener">mega</a><a href="https://cms.blockworks.co/jpmorgan-reportedly-to-allow-clients-to-access-crypto-funds/">-bank</a> 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.</p>



<p>NYDIG, the subsidiary of Stone Ridge Asset, gives BTC investment opportunities to banks, corporations and high net worth individuals. In June, NYDIG <a href="https://cms.blockworks.co/nydig-and-ncr-bringing-bitcoin-to-the-people/" target="_blank" rel="noreferrer noopener">partnered</a> with NCR to allow over 650 US banks and credit unions to soon offer cryptocurrency trading and bitcoin transactions to 24 million customers.</p>



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



<p><strong><em>Want more investor-focused content on digital assets?&nbsp;<a target="_blank" href="https://cms.blockworks.co/events/digital-asset-summit-2021-2/" rel="noreferrer noopener">Join us</a>&nbsp;September 13th and 14th for the Digital Asset Summit (DAS) in NYC. Use code ARTICLE for $75 off your ticket.&nbsp;<a target="_blank" href="https://cms.blockworks.co/events/digital-asset-summit-2021-2/" rel="noreferrer noopener">Buy it now</a>.</em></strong></p>
