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The Bank of Montreal (BMO), Canada’s third-largest bank by assets, has quietly made a $150 million investment in spot Bitcoin ETFs, according to its recent regulatory filing.
The details surfaced when BMO submitted its Form 13F-HR to the U.S. SEC, a requirement for institutional investment managers overseeing more than $100 million in U.S. assets.
Bank Of Montreal Invests $150 Million In Bitcoin ETFs
BMO’s largest investment was in BlackRock’s iShares Bitcoin ETF (IBIT), where it allocated approximately $139 million. The remaining $11 million was distributed among three other funds.
They are Ark 21Shares Bitcoin ETF, Fidelity Wise Origin Bitcoin Fund, and the Grayscale Bitcoin Trust. Additionally, the bank purchased $17,000 worth of ProShares Bitcoin ETF, a fund that primarily invests in Bitcoin futures contracts.
Institutional Adoption of Bitcoin ETFs on the Rise
BMO’s investment in multiple Bitcoin ETFs signals a growing institutional acceptance of regulated cryptocurrency products. Since the SEC approved spot Bitcoin ETFs in January 2024, major financial institutions have started to explore crypto exposure through these funds, which offer a secure and regulated way to invest in Bitcoin without the need to hold the asset directly.
Among the spot Bitcoin ETFs, BlackRock’s IBIT has emerged as a dominant player, attracting billions in inflows since its launch. BMO’s preference for IBIT suggests a strong institutional trust in BlackRock’s offering, which provides liquidity and regulatory compliance that traditional investors seek.
Growing Institutional Interest in Bitcoin
BMO is not alone in its growing embrace of Bitcoin. Financial institutions worldwide are recognizing the potential of digital assets, with several major banks increasing their exposure to Bitcoin-related investments.
The shift comes as Bitcoin continues to gain legitimacy as an alternative asset class, often compared to gold as a hedge against inflation and economic uncertainty.
Also Read: European Central Bank Predicts $10 Mln Value For Bitcoin; Price Soars Over 1.2%
In the United States, several major banks and asset managers have shown increasing interest in Bitcoin ETFs. Firms like Fidelity, BlackRock, and Ark Invest have launched Bitcoin products to cater to institutional investors looking for regulated exposure to the asset.
Beyond Canada and the U.S., banks in Europe and Asia are also exploring Bitcoin investments. Traditional financial institutions, which were once sceptical about cryptocurrencies, are now warming up to Bitcoin as it matures into a mainstream financial asset.
Czech National Bank Considers Bitcoin for Reserves
In a historic move, the Czech National Bank (CNB) is considering allocating up to 5% of its €140 billion reserves to Bitcoin. If implemented, this strategy could result in a €7 billion Bitcoin investment, making CNB one of the first central banks to hold Bitcoin as part of its official reserves.
CNB Governor Aleš Michl confirmed the potential allocation, marking a major shift in central bank policy. While most central banks remain cautious about Bitcoin, CNB’s move could set a precedent for other nations to explore Bitcoin as a reserve asset.
The Bank of Montreal’s Bitcoin ETF investment highlights the increasing institutional confidence in regulated Bitcoin products. With the Czech National Bank exploring Bitcoin reserves, the trend of mainstream financial institutions adopting Bitcoin appears to be accelerating.