$27 trillion AUM is perched over Bitcoin and crypto: CoinShares CSO

There is at least $27 trillion of assets managed by major U.S. financial institutions that are also “actively” seeking to provide clients with exposure to Bitcoin (BTC) and crypto. 

On June 26, CoinShares chief strategy officer Meltem Demirors highlighted at least eight major financial institutions that have signaled moves in the digital assets space, including BlackRock’s spot Bitcoin ETF filing and Fidelity’s crypto wealth management solutions.

Others include JP Morgan, Morgan Stanley, Goldman Sachs, BNY Mellon, Invesco and Bank of America.

“Many of the largest financial institutions in the US are actively working to provide access to Bitcoin and more,” she noted, adding that there is a whopping $27 trillion in assets under management between them.

1/ last week’s @BlackRock spot Bitcoin ETF filing was big news!

but, it’s not the only story. many of the largest financial institutions in the US are actively working to provide access to Bitcoin and more.

a quick glance – $27 trillion of client assets here! pic.twitter.com/azmHZmUL2a

— Meltem Demirors (@Melt_Dem) June 26, 2023

Earlier this month, BlackRock’s June 16 spot Bitcoin exchange-traded fund application led to a wave of filings for similar products, boosting a narrative that suggests “institutions are coming” for Bitcoin.

BTC price reached a 2023-high of $31,185 on June 24 amid surging confidence, according to CoinGecko.

Demirors however noted that while “the institutions are coming,” it’s still more of a trickle than a wave. “We’re seeing the bridges being built in real-time,” she added.

It should be noted that the $27 trillion figure is an estimation of the total assets under management across the eight institutions and only a tiny portion of this would likely be allocated to crypto investments.

Nevertheless, Reflexivity Research co-founder, Will Clemente, still echoed Demiror’s sentiment, pointing out that Bitcoin’s market capitalization is less than $600 billion.

“Between HSBC, Blackrock, Fidelity, and Schwab we are talking about $25 trillion in assets under management that will soon be enabled to buy Bitcoin.”

Institutional investors are already showing more interest in Bitcoin-related funds. The ProShares Bitcoin Strategy ETF (BITO) saw its largest weekly inflow for a year pushing AUM over $1 billion, as reported by Cointelegraph.

Related: BlackRock’s Bitcoin ETF ‘is the best thing to happen’ to BTC, or is it?

Earlier this week, Federal Reserve Board of Governors member Michelle Bowman criticized the absence of a crypto regulatory framework claiming that the uncertainty over the asset class traps institutions in a “supervisory void.”

Magazine: Crypto regulation: Does SEC Chair Gary Gensler have the final say?