Wells Fargo Files to Launch a Bitcoin Fund

A few months after dabbling with the idea of getting on the cryptocurrency bandwagon, Wells Fargo has filed documents with the US Securities and Exchange Commission to launch a designated Bitcoin fund.

• According to the filing with the Commission, the US financial institution has partnered with FS Investments and New York Digital Investment Group (NYDIG) for the initiative.
• The name of the product will be FS NYDIG Bitcoin Fund I, LP. While previous speculations indicated that Wells Fargo might be following the JPMorgan route, meaning launching an actively managed fund, it seems that the one filed with the SEC now would be passive.
• Back in May this year, the President of the bank, Darrell Cronk, gave an interview suggesting that the institution might be the next Wall Street behemoth to look into the digital asset industry.
• At the time, though, Cronk failed to provide further details on the potential new product, aside from saying that it was in the final stages of development.
• Wells Fargo’s filing with the SEC reconfirms the growing adoption rate from US banking organizations.
• By outlining an increasing demand from institutional clients, numerous others already led the charge.
• The former outspoken critique, Goldman Sachs, reactivated its crypto trading desk and even filed for a Bitcoin ETF.
• BNY Mellon enabled digital asset custodial services for its customers, which was mimicked by other banks later.
• Morgan Stanley enabled its clients to access BTC through three funds and also filed to receive a bitcoin exposure for a dozen of its own funds.