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The U.S. Spot Bitcoin ETFs have been seeing massive institutional adoption lately with two Canadian banking behemoths joining the fray with over $2 million worth of investments.
In a notable development, Canadian banking giants have entered the U.S. Spot Bitcoin ETF arena with investments worth millions. Scotia Bank and Toronto Dominion Bank (TD Bank), two of Canada’s largest financial institutions, have revealed their exposure to Bitcoin ETFs through recent SEC filings.
How Much Did These Canadian Banks Invest?
Scotiabank has disclosed more than $1.5 million invested across three major Bitcoin ETFs. This includes BlackRock’s IBIT, Grayscale Bitcoin Trust (GBTC), and Fidelity Wise’s FBTC. This diversified approach indicates the bank’s strategic entry into the burgeoning crypto market. Moreover, the investment signals growing institutional confidence in Bitcoin, despite its historical volatility and regulatory scrutiny.
Breaking down the investments, the bank reported a $512,988 stake in the Fidelity Wise Bitcoin ETF. In addition, the 13F filing reveals that Scotiabank invested $486,472 in Grayscale’s GBTC ETF. Whilst, it allocated the highest share to BlackRock’s IBIT, accounting for a stake of $580,339. Therefore, the total investment amounts to $1.57 million.
TD Bank aka Toronto-Dominion Bank, Canada’s second-largest bank, has also made its foray into the crypto space with a more modest allocation of around $121,410 in BlackRock’s IBIT ETF. While this investment is relatively small, it represents a significant step for a traditionally conservative institution known for its cautious investment strategies.
Moreover, the Canadian banking giants also considered investing in the ProShares Bitcoin Strategy ETF (BITO). According to the latest 13F declaration, TD Bank has invested $484,500. Hence, TD Bank’s total exposure to Bitcoin-based ETFs comes up to $605,910. Furthermore, the total amounted poured in by these banks is $2.18 million.
Bitcoin ETF Inflow Resurgence
The above-mentioned disclosures mark a notable shift in the Canadian banking sector’s approach to digital assets following the turbulence experienced in 2021. In addition, the move coincides with the robust inflows into the Spot Bitcoin ETFs this week with $166 million influx in the last two days. Moreover, this suggests a significant rebound from last week’s consecutive outflow that spanned three days.
According to recent statistics from Farside Investors, Bitcoin ETFs experienced an inflow totaling $100.5 million on May 14. Among these, ARKB stood out by leading the inflow with $133.1 million. This influx effectively balanced out the $50.9 million outflow from Grayscale.
Meanwhile, BlackRock’s IBIT has seen limited activity in the market, continuing to exhibit low trading volumes during the initial days of the week. Whilst, the Fidelity Wise’s FBTC ETF witnessed a moderate inflow of $8.1 million.