Two major investment banks, JP Morgan and Wells Fargo are launching private Bitcoin Fund, according to the filings with the U.S. Securities and Exchange Commission (SEC).
Both the investment banks have partnered with New York Digital Investment Group (NYDIG) in their respective funds.
NYDIG is a Bitcoin technology and financial services subsidiary of Stone Ridge. It manages over $11 billion in alternative assets.
JP Morgan Fund
Investment bank JP Morgan has filed for a bitcoin fund in collaboration with NYDIG on August 19, according to documents filed with the U.S. Securities and Exchange Commission (SEC).
Another notice also has named J.P. Morgan Securities as the recipient of the shares tied to the bitcoin fund whose issuer is based in the Cayman Islands.
Both the issuers are NYDIG’s companies.
JP Morgan will receive certain placement and servicing fees for the clients it refers to NYDIG.
This deal will offer “pooled investment fund interests” from private issuers that NYDIG has established to hold bitcoin.
JP Morgan has been embracing cryptocurrencies since July when it began giving its wealthy clients access to crypto funds. Now it has created its bitcoin fund.
Wells Fargo Fund
It too launched its bitcoin fund on the very same day with NYDIG and FS Investments as it filed for the “Notice of Exempt Offering of Securities” with the SEC. The form reads that the fund is called “FS NYDIG BITCOIN FUND I.”
It is being incorporated as a limited partnership with NYDIG and alternative assets manager FS Investments.
Wells Fargo will also receive the placement and servicing fees for the clients it refers to the issuer(s).
This, too, is a pooled investment fund.
A year ago, no one could have thought that investment banks from the traditional financial sector would be open to cryptocurrencies. The year 2021 has turned the tables in favor of digital assets. The growing popularity is forcing investors, whether retail or institutional, to embrace them.