Wells Fargo Launches a Bitcoin Fund, SEC Filing Confirms
- Wells Fargo has filed for a Bitcoin fund to allow its wealthy clients indirect exposure to bitcoin
- The fund will be a collaboration with NYDIG and FS Investments
Wells Fargo to Offer a Bitcoin Fund to its Wealthy Clients
Wells Fargo, one of the biggest investment banks in the US, has filed for a Bitcoin fund that would offer its wealthy clients indirect access to the largest cryptocurrency, bitcoin. The fund, to be named “FS NYDIG BITCOIN FUND I”, will be incorporated as a limited partnership with NYDIG, crypto services company, and FS Investments, an alternative asset manager.
The filing with the Securities and Exchange Commission (SEC), states that Wells Fargo “will receive certain placement and servicing fees” for all clients it refers to the fund. The notice also mentions that the fund’s first sale is yet to occur.
Near the end of May this year, the president of Wells Fargo Investment Institute Darrell Cronk, hinted the bank could soon pivot toward the crypto industry. “We think the cryptocurrency space has just kind of hit an evolution and maturation of its development that allows it now to be a viable investable asset,” Mr. Cronk said.
The Bank Joins a Strong Group of Wall Street Heavyweights Who Have Embraced Bitcoin
Wells Fargo’s move toward the cryptocurrency space highlights the sustained interest in digital assets within the banking sector. The financial institution managing roughly $2tn of assets is the latest among Wall Street mainstays to join the cryptocurrency bandwagon.
Lately there was heightened demand by retail and institutional clients. As a result, major banks in the US are already offering or getting ready to offer some kind of services related to the fast-emerging crypto industry.
JPMorgan announced near the end of July it is opening five cryptocurrency funds to its clients ranging from retail to institutions. The step made JPMorgan the first investment bank to grant crypto access to people beyond the wealthy tier of clients.