Wells Fargo joins Wall Street rush into crypto

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Wells Fargo & Company (NYSE:WFC), the epitome of US main street banking, has filed for a new investment fud that offers investors indirect exposure to bitcoin and other cryptocurrencies.


The fud currently is called “FS NYDIG BITCOIN FUND I” according to documents lodged with the SEC and reflecting it is a partnership with investment houses NYDIG and FS Investments.


Wells Fargo Clearing Services will receive placement and servicing fees for all clients it refers to the fund. No sales have yet been registered.


NYDIG is the firm that helped JP Morgan, another banking giant, with a fund to offer clients bitcoin exposure earlier this year.


The Wall Street giant has six funds through which clients can trade in cryptocurrencies.


Wells Fargo is joining relatively late to a party that as well as JP Morgan has already seen Goldman Sachs (NYSE:GS), BNY Mellon (NYSE:BK) and Morgan Stanley (NYSE:MS) offer customers avenues to invest in cryptocurrencies.


The bank said recently it was now a viable investable asset having previously dismissed it as an option for customers at the end of 2020.


One hurdle for all of the banks and the cryptocurrency strategies is the refusal of the SEC to play ball especially with regard to exchange-traded funds based on cryptos.


Two more ETFs were registered with the SEC this week according to Cointelegraph, taking the number awaiting approval by the SEC to 23.


Originally, most ETFs being registered were focused on bitcoin, but now with other currencies gaining traction the field is widening.


The latest ETFs to be registered are from VanEck and ProShares and focused on ethereum.


Both will invest in ethereum futures contracts, pooled investment vehicles and exchange-traded products with ETH exposure.


The funds will not be buying ethereum directly according to the reports.

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