JP Morgan Reports Holdings In Multiple Spot Bitcoin ETFs

US-based financial company JPMorgan Chase has announced an investment in a $60,859 Bitcoin exchange-traded fund (ETF) offered by Grayscale, ProShares, Bitwise, BlackRock, and Fidelity. In a filing on May 10 with the Securities and Exchange Commission (SEC), JPMorgan Chase stated it will invest in ProShares Bitcoin Strategy ETF (BITO), BlackRock's iShares Bitcoin Trust (IBIT), and reported ownership of approximately $760,000 worth of shares in Fidelity's Wise Origin Bitcoin Fund (FBTC), Grayscale Bitcoin Trust (GBTC), and Bitwise Bitcoin ETF.

The filing coincided with Wells Fargo reporting its holdings and exposure to Grayscale and ProShares Bitcoin ETFs in Bitcoin Depot on the same day. Susquehanna International Group reported on May 7 that it purchased more than $1 billion worth of shares of spot cryptocurrency ETFs in the first quarter of 2024. JPMorgan Chase is the largest bank in the United States by assets, with approximately $2.6 trillion under management.

The SEC added that observers should not assume the accuracy and completeness of the information provided by financial companies. The SEC approved the listing and trading of Spot Bitcoin ETFs on U.S. exchanges in January. Many experts expect the committee to decide on a $2,911 Ethereum exchange-traded fund (ETF) by May 23, the deadline for applications from asset management firm VanEck.

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U.S. House to Vote on Cryptocurrency Bill for SEC, CFTC Clarity in May

Members of the U.S. House of Representatives Financial Services Committee announced they are preparing for a floor vote on the Financial Innovation and Technology for the 21st Century Act, also known as FIT21. House Financial Services Committee Chairman Patrick McHenry said in a May 10 announcement that the FIT 21 bill could be cleared for a vote on the full floor later this month after consideration by the Rules Committee.

Republican lawmakers say the FIT21 bill would give the Commodity Futures Trading Commission (CFTC) additional authority over digital products and clarify the Securities and Exchange Commission's (SEC) role in cryptocurrencies. The announcement follows a bipartisan vote in the House of Representatives to support a resolution repealing the SEC's crypto accounting rules, which many criticized for imposing restrictions on banks.

"Although not perfect, FIT21 is an important step in establishing U.S. federal regulation of digital assets." This is an election year in the United States, and many lawmakers are making digital asset regulation a campaign issue and continue to promote monitoring. Coinbase and cryptocurrency exchange State have announced the creation of a political action committee to support pro-crypto candidates in 2024.

Hong Kong Issuer Seeks Approval for Spot Bitcoin ETF Entry into Mainland China

The CEO of Harvest, which issues a spot Bitcoin exchange-traded fund (ETF) in Hong Kong, is looking to make its Bitcoin ETF accessible to mainland Chinese investors. Han Tongli may offer its Bitcoin and Ether ETFs to mainland Chinese investors via Hong Kong's ETF Connect framework, per the South China Morning Post on May 9.

ETF Connect was launched in 2022, and it was approved by the China Securities Regulatory Commission and the Securities and Futures Commission. The inclusion of Bitcoin and Ether ETFs in the ETF Connect program would potentially be a massive bullish trigger on cryptocurrency markets, as China has a large investor pool.

Hong Kong’s capability to provide mainland Chinese investors with a Bitcoin ETF was a hot issue even before the launch of Bitcoin and Ether ETFs in Hong Kong on April 30. According to Bloomberg data, some Hong Kong-based subsidiaries of mainland Chinese companies have 1,400% more assets in the mainland Chinese market than in the local one.