The banking and financial world is changing right in front of our eyes. Like many other sectors, the world has had to change due to the COVID-19 pandemic. There have never been more eyes on government and institutions than now. Although the pandemic is horrible, I wish it were over. Luckily, the world has found a new source of hope,e ad that’s cryptocurrencies. People realize the power of decentralized finance and the luxury of having complete control of their hard-earned money. Online crypto exchanges like Coinbase, Gemini, Bitgo, Shakepay offer options to gain exposure to Cryptocurrencies. Traditional Institutions should be shaking in their boots as they watch the money pour into Cryptocurrencies. There are only crypto-friendly banks right now, and it’s going to pay off big time for them, and here’s why.
Banks that have already adopted a form of Crypto exchange are going to win lots of business. Unlike many millennials or Generation Z, Boomers have a more challenging time gaining exposure to cryptocurrency. As a result, the bank is a more convenient option. Crypto-friendly banks will give exposure through exchange-traded funds or access to the hard asset. Below, I have listed institutions in North America that have adopted Cryptocurrencies.
Crypto-Friendly Banks United States
Morgan Stanley
Hats off to Morgan Stanley for being the first major US institution to offer Bitcoin Funds to high net worth clients as of March 17th, 2021. Morgan Stanley earned lots of respect for taking the risk to be the first to offer Bitcoin funds and be the trendsetter for the future. Morgan Stanley provides two different Bitcoin funds for high-net-worth clients. Galaxy Digital Holdings and Bitcoin company NYDIG offer funds to Morgan Stanley with a minimum investment amount of $25,000.
BNY Mellon
Shortly after the Morgan Stanley news, the oldest bank in America, BNY Mellon, announced. “Digital Assets are the future.” BNY Mellon has 2 trillion dollars of assets under management, and having them join the crypto ecosystem would be massive. As of right now, no American ETF has been approved by the SEC. Although no ETF has been approved yet, I have a hunch BNY Mellon will be the first one out of the gate because of their long history on Wall Street. There is a reason BNY Mellon is the oldest bank in America: because they know how to adapt to change.
JPMorgan Chase
JPMorgan’s CEO Jamie Dimon has been quite critical about Bitcoin in the past. I’m not sure if it was an actual change of heart or FOMO, but JP Morganchase Chase has announced they will be offering high-net-worth clients Bitcoin funds as early as this summer. JPMorgan is one of the biggest banks in America, with 3.2 trillion in assets under management. I’m thrilled they are getting involved in the crypto ecosystem, but I have spoken about Jamie Dimon to great lengths in the past, and I recommend being careful with him.
Wells Fargo
Just yesterday, May 19th, Wells Fargo announced it would introduce managed digital currency funds for its high-net-worth clients. This announcement could not be any more bullish for Bitcoin, especially because we are just coming off the biggest correction Bitcoin has had in 4 years! Wells also mentioned, “WFII believes that crypto-currencies have gained stability and viability as assets, but the risks lead us to favor investment exposure only for qualified investors, and even then through professionally managed funds.” It’s only a matter of time before every bank in the United States offers crypto funds.
