updraftplus domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131hustle domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131wpforms-lite domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131Bitcoin could experience an uplift in price because Wells Fargo estimates that up to $150 billion of tax refunds will be given to Americans for their 2025 tax filing. This may spur a YOLO inflow into risky assets. Historically, the liquidity wave season has often resulted in intense speculative activity in Bitcoin, meme coins, and
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]]>Investment advisors of $1.3 trillion asset manager Morgan Stanley to offer spot Bitcoin exchange-traded funds (ETFs) to their clients starting Wednesday. Banking giants such as Wells Fargo and UBS are likely to follow Morgan Stanley to help their clients get exposure to Bitcoin.
Financial giant Wells Fargo is reportedly looking to allow its financial advisors to offer Bitcoin ETFs to select clients. The bank is likely to use a similar strategy as Morgan Stanley, which approved its 15,000 brokers to recommend Bitcoin ETFs in brokerage accounts.
Several sources at the bank believe that they will quickly join other investment banks in the race to meet rising demand from clients for investing in Bitcoin. Crypto insider Andrews AP Abacus first reported the news, similar to his previous post in April about Morgan Stanley looking to offer Bitcoin ETFs exposure.
He added that Wells Fargo is next to offer exposure to other ETFs along with BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund. He thinks a full platform approval could come by next month.
Meanwhile, Morgan Stanley can now offer Bitcoin ETFs in brokerage accounts but not in advisory accounts, confirmed a head of private clients and family offices. He added that some teams saw 40% of total client assets in advisory accounts and 60% in brokerage accounts.
Former SEC Enforcement Chief John Reed Stark slammed Morgan Stanley’s decision to allow investment advisors to recommend Bitcoin ETFs to their clients. He asserts that these certified financial planners (CFPs) may lose their CFP credentials.
Continuing his anti-crypto stance, Stark argued that it increases risk for Morgan Stanley’s retail investors as crypto-asset investments are associated with significant risks and uncertainties. He cited the CFP Board’s recently adopted revised Sanction Guidelines, revised Fitness Standards, and revised Procedural Rules that took effect on July 1 this year.
However, BlackRock and Fidelity Bitcoin ETFs are US SEC-approved funds enabling retail and institutional investors to diversify their investments. This helps in the mass adoption of Bitcoin. Millennium Management, Capula Management, and Schonfeld Strategic Advisors are the three largest holders in BlackRock Bitcoin ETF (IBIT). Currently, BlackRock Ethereum ETF is also witnessing record inflows despite market uncertainty.
Also Read: Japan’s Top Finance Regulator Turns Cautious On Bitcoin ETF Approvals
Varinder Singh
Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
JP Morgan and Wells Fargo, two of the largest banks in the United States, have announced their investments into Spot Bitcoin ETFs, unveiling their exposure to BTC, the world’s largest cryptocurrency. This significant development comes amidst the persistent downturn in the crypto market, resulting in BTC’s price dipping slightly above $60,000.
American financial services companies, Wells Fargo and JP Morgan, have revealed their exposure to BTC by disclosing their adoption of Spot Bitcoin ETFs in a recent filing. This decision to invest in BTC ETFs marks a notable change from the banks’ previous cautious approach to cryptocurrencies.
Wells Fargo revealed in its new filing to the United States Securities and Exchange Commission (SEC) that it currently holds 2,245 shares of Grayscale Bitcoin Trust (GBTC), valued at $121,207, which it has since converted into an ETF. Additionally, the American bank holds 37 shares of the ProShares Bitcoin Strategy ETF (BITO), valued at $1,195.
On the other hand, JP Morgan, which holds about $2.9 trillion in Assets Under Management (AUM), has revealed its total Spot BTC ETF holdings in an SEC filing. The bank reported that it had purchased about $760,000 worth of shares of BlackRock’s iShares Bitcoin Trust (IBIT), Fidelity’s Wise Origin Bitcoin Fund (FBTC), Grayscale Bitcoin Trust (GBTC), Bitwise Bitcoin ETF, and ProShares Bitcoin Strategy ETF (BITO).
Moreover, JP Morgan also owns about 25,021 shares valued at $47,000 in cryptocurrency ATM provider, Bitcoin Depot. The investment company also unveiled its exposure to Spot BTC ETFs just hours after Wells Fargo’s announcement.
Despite the regulatory uncertainty and the market’s continuous volatility, institutional interest in cryptocurrencies, particularly BTC, has been growing rapidly. Bloomberg senior analyst, Eric Balchunas also forecasted that more financial services companies would likely follow JP Morgan and Wells Fargo’s footsteps to unveil holdings in Spot Bitcoin ETFs as market makers or Authorized Participants (APs).
Despite the increasing interest from traditional financial institutions seeking exposure to BTC, the price of the cryptocurrency has shown a surprising lack of bullish momentum. Since its halving event on April 20, BTC has been trading sideways, witnessing continuous declines that have pushed its price down to around $57,000 previously.
The cryptocurrency, which recorded an all-time high above $73,000 in March, has seen a 14.20% drop over the past month. Additionally, Bitcoin gave up a large portion of its gains before the halving and is currently trading at $60,494, according to CoinMarketCap.
Blockchain analytics platform, Santiment, revealed that the ongoing lack of interest in BTC and the broader market sentiments could be a strong sign that the cryptocurrency is getting close to its bottom.
BTC price falls below $61,000 | Source: BTCUSD on Tradingview.com
Featured image from PlasBit, chart from Tradingview.com
Bitcoin (BTC), the first and largest crypto, has amazed the crypto community with its surge past $72,000 lately. Amid the growing optimism, the Spot Bitcoin ETF issuer Bitwise’s Chief Information Officer Matt Hogan made a stunning statement. Hogan, who also manages the Bitwise Bitcoin ETF (BITB), noted that institutional investors like Morgan Stanley and Wells Fargo are expected to join the ETF game soon.
In a recent CNBC interview, the Bitwise CIO underscored the growing popularity of Bitcoin ETFs amid all kinds of investors. He noted that initially retail investors stepped in while hedge funds and other institutional investors are now lining up for a spot in the Bitcoin ETF frenzy.
Moreover, Hogan highlighted that they are expecting to “unlock” major wealth management platforms like Morgan Stanley and Wells Fargo soon, which would mark a massive milestone for these ETFs. In addition, the Bitwise CIO emphasized that they have been witnessing corporates line up to get access to the Bitcoin exchange-traded funds. Furthermore, to reaffirm Bitcoin ETF’s robust growth, he said, “A lot of flood gates are open.”
When asked about how many wirehouses have adopted Bitcoin ETFs, Hogan stated that currently they’re offering unsolicited investment facilities. This means that if their clients request to invest in a BTC ETF, only then these wirehouses would facilitate that. However, Hogan believes that these wirehouses would offer solicited services for the Bitcoin ETFs in near future.
Such a move would provide greater exposure to Bitcoin funds. Moreover, Hogan cited historical trends wherein such exposure leads to a massive influx, fostering the growth of these ETFs. Furthermore, the Bitwise CIO connected the Bitcoin price rally to the surge in BTC exposure via ETFs.
He noted that Bitcoin is currently in the “price discovery phase” and it can be largely attributed to the ETFs. Hogan stated that previously, only a fraction of the investment arena invested in crypto or Bitcoin, however, the advent of BTC ETFs has turned the tables.
Also Read: Thailand Greenlights U.S. Spot Bitcoin ETF Investments, But There’s A Condition
The U.S. Spot Bitcoin ETF experienced an unprecedented surge in institutional investments on March 11, 2024. Farside UK’s provisional data revealed that approximately $505.6 million flowed into the ETFs on Monday, implying a substantial vote of confidence in digital assets.
This surge in inflows underscores the rising interest of institutional investors in Bitcoin, despite challenges faced by Grayscale’s Bitcoin Trust (GBTC), which witnessed significant outflows. The spotlight shone on industry leaders like BlackRock and Fidelity, whose respective products, iShares Bitcoin Trust (IBIT) and FBTC, together accumulated over $775 million in inflows.
BlackRock’s IBIT reported an impressive influx of $562.9 million, highlighting the growing institutional confidence in Bitcoin as a legitimate asset class. Similarly, Fidelity’s FBTC saw a notable inflow of $215.5 million, further cementing institutional support for digital assets. Despite GBTC’s challenges, the overall sentiment toward these ETFs remains bullish, driven by positive market momentum and an expanding institutional presence.
Also Read: Blackrock Brings Ethereum ETF Enthusiast on Board to Focus on Crypto Offerings
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
In a recent statement, Wells Fargo’s Treasury Management officer Shannon Thorp provided an eye-catching price prediction for XRP. The forward-thinking executive anticipates a potential surge in XRP’s value to anywhere between $100 and $500 in the short term, specifically within the next 4 to 7 months. This price hike prediction represents an astounding 14,200 % to 71,400% increase from the current trading value.
Thorp acknowledges the longstanding debate within the XRP community, where one faction relies solely on chart patterns and trends exhibited by Bitcoin to draw short-term price predictions. On the other hand, another group emphasizes the significance of XRP’s utility, believing that its partnerships and the replacement of antiquated systems will be the key drivers of its price. However, Thorp presents a novel perspective, emphasizing that XRP is NOT a security and basing price forecasts on traditional securities logic is counterintuitive to the original vision set forth by the Ripple team.
Expanding on her rationale, Thorp introduces the concept of Liquidity Strength (LS) as a pivotal metric to consider when predicting XRP’s future value. To ascertain a price range for the token, she takes into account the total supply, including circulating tokens, burnt tokens, those owned by banks, governments, and individuals, and assumes that Ripple has released all their XRP from escrow.
According to Thorp, if one company were to possess all 100 billion tokens, their Liquidity Strength (LS) in a price range of $1.00 to $5.00 would amount to $100 billion to $500 billion. However, she argues that such a calculation fails to consider the potential growth in the economy, messaging and settling activities, and the continuous benefits derived from using XRP.
Drawing on real-world examples, Thorp compares the token’s potential to that of SWIFT, which handles approximately 44.8 million messages per day. Even if Ripple could capture only 30% of SWIFT’s daily value, which she approximates at $7 trillion, it would result in a staggering $2.1 trillion in daily value (roughly 13.2 million messages) for XRP. Considering XRP’s quick settlement time of 1 to 5 seconds, the liquidity would indeed be present. However, Thorp highlights the challenge of conducting large transactions with limited Liquidity Strength, as it may require a significant portion of a bank’s XRP holdings.
To arrive at her price prediction, Thorp factors in various elements such as all global banks, burnt XRP, individual holdings, XRP distributed to large banks and creators, and tokens available on liquidity hubs and exchanges. She estimates that at any given time, there may be 50 to 75 billion XRP supporting Liquidity Strength (LS). When distributed across approximately 300 to 1000 different banks, liquidity providers, and governments, this would yield around $75 million XRP/dollars for each institution.
Taking into account J.P. Morgan as a top-tier bank with a daily transaction volume exceeding $8 trillion, Thorp postulates that even if Ripple captured only 10% of this market, which amounts to $800 billion, the existing 75 billion XRP in circulation would not suffice to move such massive sums efficiently. Thorp acknowledges that this estimation solely pertains to cross-border transactions and does not encompass derivatives, real estate, CBDCs, technical parallels, and NFTs.
With the groundwork laid, Thorp makes her price prediction, projecting XRP’s price range to be anywhere from $100 to $500 in the near short term (4 – 7 months). Her calculation is based on the Liquidity Strength (LS) scenario, where a XRP price of $100 with a supply of 50 billion XRP would yield an LS of $5 trillion, while $500 would result in an LS of $25 trillion.
According to Thorp, this valuation gives the market breathing room, allows for growth, and assures that no single entity needs to hold billions of XRP to operate daily. Furthermore, Thorp believes that a potential “flip of the switch” moment could trigger this price surge – an event akin to a re-evaluation for XRP, similar to how gold is assessed.
Notably, Thorp’s speculation sets an exciting stage for the future of XRP, albeit it is important to remember that her prediction is based on several assumptions that may or may not actualize. As always, those interested in investing should conduct their due diligence, consider multiple perspectives, and make informed decisions.
At press time, the XRP price was at $0.7074.
Featured image from iStock, chart from TradingView.com
The CEO of Ripple recently suggested that Wells Fargo did not receive the ‘FTX treatment’ despite exploiting its customers.
Ripple CEO Brad Garlinghouse recently likened the recent Wells Fargo fund management fiasco to the collapse of FTX. However, Garlinghouse disapproved of what he perceived as a hypocritical reaction to Wells Fargo’s case. According to the Ripple CEO, the leading American bank’s $3.7 billion fine for mismanaging customers’ interests was on the same scale as FTX’s monumental fall. However, Garlinghouse says the outrage directed at Wells Fargo turned out to be barely noticeable compared to the sunken crypto exchange.
The Ripple CEO took to Twitter to share his thoughts on the matter in a post that read:
“The world is (appropriately) outraged by SBF and FTX’s fraud, but when Wells Fargo mismanages billions in customer funds as well, it’s barely a blip on the radar. Food for thought…”
Garlinghouse’s tweet was accompanied by a popular comic book meme that alluded to the perceived double standard by government authorities.
Garlinghouse’s criticism of the lack of attention directed towards Wells Fargo for its misdeeds garnered varied responses from Twitter observers. Although few questioned the meaning behind his verbal attack, a majority supported the Ripple CEO’s assessment of the Wells Fargo case. This majority support included insisting that relevant authorities should have extended the same FTX treatment to the prominent bank. In addition, some other users pointed out that the system favored traditional banking and finance over crypto-focused operations. Yet still, a few users also addressed the perceived double standard as proof that traditional banks’ own and control the government.’
Two days ago, the United States Consumer Financial Protection Bureau (CFPB) demanded that Wells Fargo pay a $3.7 billion fine. According to the consumer protection agency, Wells Fargo committed widespread mismanagement of auto loans, mortgages, and deposit loans. The CFPB also alleged that the San Francisco-based bank’s unethical conduct resulted in billions of dollars in financial harm to clients. This mismanagement also resulted in the wrongful foreclosure of homes and illegal repossession of vehicles, to name a few.
The CFPB’s hefty fine comprised over $2 billion in consumer redress and a $1.7 billion civil penalty.
Weighing in on Wells Fargo’s unlawful systematic fees and interest charges on its customers, CFPB Director Rohit Chopra stated:
“Wells Fargo’s rinse-repeat cycle of violating the law has harmed millions of American families. The CFPB is ordering Wells Fargo to refund billions of dollars to consumers across the country.”
In addition, Chopra suggested that this incident was not the first time the banking giant would violate the law. As he put it, “this is an important initial step for accountability and long-term reform of this repeat offender.”
According to reports, there are 16 million customers affected in the latest Wells Fargo case.
In 2016, the multinational bank and financial services platform also received a $185 million fine from the CFPB. At the time, the agency accused Wells Fargo of creating countless fraudulent savings accounts for its customers without their consent. By 2020, the banking giant agreed to pay $3 billion to resolve all liabilities pertaining to the case.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
Bitcoin and cryptocurrencies had a huge boom in 2021 with the combined crypto market exploding from under $1 trillion to around $3 trillion—with some predicting the market could grow much further.
The bitcoin price soared to almost $70,000 per bitcoin late last year before crashing back to just over $30,000. Ethereum and other major cryptocurrencies, including Binance’s BNB, solana, cardano and XRP, saw similar volatility. Crypto prices have rebounded over the last week but remain highly volatile.
Now, banking giant Wells Fargo has predicted global crypto adoption could “soon hit a hyper-inflection point”—adding “it is still early in the cryptocurrency investment evolution.”
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The bitcoin price has swung wildly over the last year, with ethereum, BNB, solana, cardano and XRP … [+]
“For today’s investor trying to figure out if we are early or late to cryptocurrency investing, looking at technology investing in the mid-to-late 1990s seems reasonable,” Wells Fargo’s global investment strategy team wrote in a report this week. “At that time, the internet hit a hyper-adoption phase and never looked back. Cryptocurrencies appear to be at a similar stage today.”
The analysts pointed to research from the bitcoin and crypto exchange Crypto.com that found the number of global cryptocurrency users reached 221 million in June 2021, or just under 3% of the world’s population, highlighting that “it took only four months to double the global cryptocurrency population from 100 million to 200 million.”
“If this trend continues, cryptocurrencies could soon exit the early adoption phase and enter an inflection point of hyper-adoption, similar to other technologies. There is a point where adoption rates begin to rise and do not look back […] Precise numbers aside, there is no doubt that global cryptocurrency adoption is rising, and could soon hit a hyper-inflection point.”
However, the team—part of Wells Fargo Investment Institute, the research division of Wells Fargo Wealth and Investment Management—cautioned that “cryptocurrency investment options today are still maturing” and they “advise patience,” adding they “are hopeful that greater regulatory clarity in 2022 brings higher quality investment options.”
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Wells Fargo analysts argue that bitcoin and crypto adoption is following a similar trend to internet … [+]
Bitcoin and crypto regulation has been pushed up the agenda of governments around the world after 2021’s huge bull run, with the growth of blockchain-based stablecoins setting off regulator alarm bells.
Last month, it was reported that the Biden administration in the U.S. is preparing an executive order that will outline a comprehensive government strategy on bitcoin and cryptocurrencies and ask federal agencies to determine their risks and opportunities.
Meanwhile, a sudden sell-off that hit bitcoin, ethereum and others late last year was triggered by expectations that the U.S. Federal Reserve will repeatedly hike rates this year, increasing the cost of borrowing and beginning to taper its pandemic-era stimulus measures.
The crypto price crash—hitting all major cryptocurrencies including bitcoin, ethereum, Binance’s BNB, solana, cardano and XRP—has sparked fears that a new so-called crypto winter could be setting in, similar to the 2018 bear market that saw many of the biggest coins lose 90% of their value.
“Even though the current crypto trend looks bearish, we have to take in consideration that the structure of crypto investments is quite different now compared to the previous peaks at the end of 2017,” Andras Ivan, an analyst at international broker comparison site BrokerChooser, said in emailed comments.
“The market cap is significantly higher now and institutional investors joined in the past 1-2 years. That might help the market to avoid such serious drops and disappearing interest that we experienced in the crypto winter of 2018-2019.”
Bitcoin (BTC) jumped from a daily low of $44,161 to record a new daily high of $47,348, seeing a gain of over $3,000 over the past 24-hours. The top cryptocurrency managed to bounce back from the key support level of $43,935 and just a couple of rallies away from setting a new 3-month high above $48,000.
The immediate resistance for the top cryptocurrency lies just above $48,000 breaking which it could see the price breeze through $50K with ease. BTC has rallied nearly 63% from the July low but faces key technical hurdles before it could retest ATHs above $64K. The top cryptocurrency has faced rejection at $48,000 on a couple of occasions while $47,000 is still acting as a key resistance.
The crypto market also moved out of a three-day-long bearish trap as the market cap surged above $2 trillion again. Along with Bitcoin, most of the altcoins also surged in green, gaining anywhere between 5%-20%. Cardano (ADA) became the second altcoin after Solana hit a new ATH above $2.50 and more crypto tokens prepare to test their previous ATHs.
The bitcoin price surge was attributed to a number of announcements by leading financial giants including BlackRock and Wells Fargo. BlackRock, the world’s largest asset manager revealed $382 million in Bitcoin mining stocks while Wells Fargo registered a private Bitcoin Fund. Both the financial giants in the past have been critical of Bitcoin, but like many others, they have also surrendered to its surging demand.
Santiment data indicated that the crowd sentiment has turned bearish due to the three-day-long bearish dominance and many expected the price to fall further. However, historically BTC price has pumped when the market least expects it.
The top cryptocurrency needs to break past the $50,000 resistance first and later need to clear $51,000 levels as it might pose a challenge being the April high. The second leg of the bull run has begun and two altcoins Solana and Cardano have already reached new ATHs. Thus it is only a matter of time before Bitcoin and other altcoins follow the same.
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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