• The Bank of Montreal has revealed a $150 million investment in spot Bitcoin ETFs through a recent SEC filing.
  • BMO’s filing revealed its $139 million investment in BlackRock’s iShares Bitcoin ETF, alongside smaller investments in Ark 21Shares, Grayscale Bitcoin Trust, and Fidelity Wise Origin.

The Bank of Montreal (BMO), Canada’s oldest bank, boasting over 900 branches across Canada and more than 1,000 in the United States, has been making strides in the cryptocurrency market. The Securities Exchange Commission’s (SEC) approval of Bitcoin exchange-traded funds (ETFs) in January 2024 triggered an influx of traditional institutions seeking to increase their exposure to the leading digital asset.

This increased interest is largely attributed to ETFs providing a new and accessible window of investment in the underlying asset, Bitcoin.

BMO’s foray into the crypto space is highlighted by its purchase of approximately $150 million worth of spot Bitcoin ETFs. This investment was disclosed in the bank’s mandatory Form 13F-HR filing with the U.S. SEC on Thursday. Filing this form is a regulatory requirement for institutional investment managers who oversee more than $100 million in U.S. assets, offering a level of transparency into their investment holdings. BMO’s move signifies a growing acceptance of Bitcoin as a legitimate asset class within traditional financial institutions. 

BMO’s biggest acquisition was BlackRock’s iShares Bitcoin ETF, with an investment of $139 million. The bank also allocated funds to three other Bitcoin ETFs: Ark 21Shares Bitcoin ETF, Fidelity Wise Origin Bitcoin Fund, and Grayscale Bitcoin Trust.

Additionally, BMO purchased $17,000 worth of ProShares Bitcoin ETF, a fund that primarily invests in Bitcoin futures contracts rather than direct Bitcoin holdings. Also, the National Bank of Canada recently made a $2 million investment in Bitcoin exchange-traded funds .

Wall Street Banks Push for Crypto IPO Deals

As major financial institutions embrace Bitcoin, Wall Street banks are aggressively positioning themselves to capitalize on the growing crypto market. Firms such as Morgan Stanley, Bank of America, and the Royal Bank of Canada are actively pursuing crypto-related initial public offering (IPO) opportunities, recognizing the sector’s potential for substantial growth.

In a significant regulatory shift, the SEC withdrew the Staff Accounting Bulletin 121, which imposed strict rules on the custody of digital assets. In its place, the SEC introduced Staff Accounting Bulletin 122, which allows companies to evaluate their crypto-related obligations using broader accounting standards such as U.S. GAAP contingency rules and IFRS guidelines. This regulatory adjustment could make it easier for traditional financial institutions to engage with crypto firms.

With these changes, banks are eager to underwrite and advise crypto firms preparing to go public, anticipating a wave of IPOs in the sector. The shift aligns with President Donald Trump’s signals of support for pro-crypto policies, which could loosen regulations and position the U.S. as a leading hub for cryptocurrency businesses. Meanwhile, Bitcoin is trading at $97,396, showing a modest 0.69% increase in the past 24 hours despite a slight decline of 38% in its trading volume.

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