Bitcoin's explosive growth this year has led major Wall Street banks to take decisive action in the cryptocurrency market. This development marks a significant shift in how large financial institutions view digital currencies.
Wall Street Banks Diving Into Crypto Market
Bitcoin, once considered an unreliable currency, is now attracting the attention of major financial players. Commissions and financial prospects are prompting banks to reconsider their stance and actively engage in the cryptocurrency market. In this context, the US Securities and Exchange Commission (SEC) has approved Bitcoin ETFs, which, combined with Donald Trump's return and his administration's support for cryptocurrency, fuels Wall Street's interest.
Big Money and High Risks for Wall Street
Banks like Barclays and Citigroup have steadily participated in fundraising for crypto companies, issuing convertible bonds for MicroStrategy. JPMorgan is also engaging by backing major Bitcoin miners such as Core Scientific and Mara. Meanwhile, Goldman Sachs is raising funds for Applied Digital, a company building data centers for Bitcoin mining. The total amount of cryptocurrency-related bonds issued this year exceeds $13 billion, with most issued in recent months. Banks' earnings from these deals are at least $200 million.
Where Financial Giants Draw The Line
Despite their active involvement in the crypto sector, large banks still limit their investments in certain industries. The adult industry and cannabis, although legal, remain sectors where many banks prefer not to participate. A similar attitude persists towards cryptocurrency, as it occupies a gray area where profitability clashes with reputational risks.
Wall Street banks continue to monitor developments in the cryptocurrency market closely, trying to balance the risks and income opportunities. While some limit their participation, others are willing to take risks for profit.
