Wells Fargo launches Bitcoin fund for high net worth customers

Wells Fargo, a publicly traded financial services company in the United States, registered on Thursday (19) a private Bitcoin fund with the country’s regulators. As a result, the institution becomes the latest “megabank” to offer an indirect cryptocurrency investment product to its high net worth clients.

According to a knowledgeable source, the new registered fund is a liability. As such, it differs from previous reports in which Wells Fargo said it would launch an actively managed offering.

“We think the cryptosphere has just reached an evolution and maturation of its development that allows it to now be a viable investment asset,” Wells Fargo President Darrell Cronk said in May when he announced he would launch the fund.

Wells Fargo Bitcoin Fund

According to Coindesk, NYDIG, Stone Ridge’s cryptocurrency arm, and FS Investments are partners with Wells Fargo. It is worth noting that both organizations have already worked together on Bitcoin funds.

As pointed out by the document filed with the US Securities and Exchange Commission, the SEC, the fund will be called FS NYDIG Bitcoin Fund I, LP.

In practice, the bank will only offer exposure to cryptocurrency to certain customers as part of its wealth management.

These are high net worth customers who want to gain exposure to cryptoactives without having to buy them directly.

JPMorgan and Bitcoin

In July, JPMorgan Chase began offering Bitcoin, Bitcoin Cash, Ethereum and Ethereum Classic funds to retail customers.

With the initiative, the banking giant became the first major US bank to provide cryptocurrency funds to all clients in the wealth management division.

As early as August, JPMorgan began offering Private Bank clients a passively managed Bitcoin fund. Like Wells Fargo, the fund is also being offered in partnership with NYDIG.

Both JPMorgan’s and Wells Fargo’s initiatives corroborate a study of Fidelity Digital Assets. According to the survey, 70% of institutional investors expect to buy cryptoactives in the future.

In addition, of this percentage, 90% expect their company or customer portfolios to include cryptocurrencies in the next 5 years.

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