UBS's bitcoin-related investments did not stop at IBIT. The filing said UBS is allocating funds to premium income products and other bitcoin-related ETFs, bringing its total crypto ETF holdings to about $90 million. It also showed the trend of traditional financial institutions building exposure through ETFs rather than holding bitcoin directly is continuing.
The market is focusing on spot bitcoin ETFs establishing themselves as an entry channel for institutional money. After the SEC approved multiple bitcoin funds in January 2024, major financial firms have been able to access the asset class through stakes in regulated products traded on exchanges. Pension funds and U.S. state governments have also been adding spot bitcoin ETFs alongside technology stocks and other U.S. equities.
IBIT is cited as the crypto ETF that has attracted the most money. The fund has raised more money than any other crypto ETF, and assets under management are currently tallied at $47.3 billion. UBS's additional purchase can be seen as a case of adding more money to a product where liquidity and institutional demand are concentrated.
UBS is also investing in bitcoin-related companies alongside ETFs. The filing showed UBS invested less than $1.5 million in bitcoin miner American Bitcoin (ABTC) Corp, backed by U.S. President Donald Trump's sons Eric Trump and Donald Trump Jr.
Amid this trend, attention is also turning to the possibility of UBS expanding its services. Earlier this year, reports said UBS was considering offering bitcoin trading services to some private clients in Switzerland. As traditional banks broaden their points of contact with bitcoin through both ETF investments and client services, UBS's next move is expected to be the actual scope of any trading service offering and whether it adds further assets.
JUST IN: Switzerland's largest bank UBS discloses owning $83.2 million of BlackRock's Bitcoin ETF pic.twitter.com/Nq9AU4GwdX
