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Banks Embracing Bitcoin ETFs and the Impact of New SEC Guidance on the Crypto Market

As of January 2025, a growing percentage of banks in the world are involved in cryptocurrency or blockchain projects, reflecting Bitcoin’s growing acceptance. The Total Crypto Market Cap experienced an impressive 45.7% growth in Q4 2024, closing the quarter at $3.91 trillion—a remarkable 97.7% increase over the entire year. It’s no surprise that many major banks have incorporated crypto investments, particularly through Bitcoin exchange-traded funds (ETFs). Here’s a look at the banks leading the way in Bitcoin adoption, the implications of new SEC guidance like SAB 121 and SAB 122, and why Bitcoin demand is likely to surge further. 

Banks Offering Bitcoin Investments 

Several well-established banks now offer Bitcoin ETFs, signaling a broader acceptance of cryptocurrency within traditional financial institutions. These ETFs allow investors to gain exposure to Bitcoin without directly owning the cryptocurrency. Here are some notable players: 

  • Merrill Lynch (Bank of America): Provides access to spot Bitcoin ETFs for wealth management clients. 
  • Wells Fargo: Offers Bitcoin ETFs through its brokerage services and the WellsTrade online platform. 
  • Charles Schwab: Recognizes growing interest in Bitcoin by offering spot ETFs to clients. 
  • Robinhood Markets Inc.: Caters to its user base with Bitcoin ETF trading options. 

In addition, major global financial institutions like JPMorgan Chase, Morgan Stanley, Goldman Sachs, and BNY Mellon have made substantial investments in Bitcoin ETFs, custody solutions, and blockchain projects. With this widespread institutional involvement, the financial industry is increasingly validating Bitcoin as a legitimate asset class. 

The SEC’s SAB 121 and SAB 122: What Changed? 

In January 2025, the SEC introduced Staff Accounting Bulletin No. 122 (SAB 122), replacing the controversial SAB 121. Here’s a breakdown of the key differences and their implications: 

SAB 121 Overview 

Introduced in 2022, SAB 121 required banks and public companies holding customers’ crypto assets to list them on their balance sheets. While aimed at protecting investors in case of bankruptcy, this rule created challenges for firms due to increased liability concerns and stricter accounting practices. It drew widespread criticism for being overly burdensome. 

SAB 122 Overview 

SAB 122 rescinded the guidance in SAB 121 and instead aligned with existing Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) provisions. The updated guidelines: 

  • Eliminate the requirement for firms to recognize customers’ crypto assets as liabilities on their balance sheets. 
  • Allow entities to apply retrospective adjustments, simplifying compliance. 
  • Emphasize disclosure requirements to help investors understand firms’ crypto safeguarding obligations. 

This regulatory shift reflects feedback from stakeholders and aims to foster a more practical framework for crypto accounting. 

Impact on the Crypto Market 

The rescission of SAB 121 reduces the financial burden on institutions holding crypto assets, encouraging more banks and public companies to engage with digital assets. By simplifying reporting requirements and eliminating excessive liability concerns, SAB 122 could accelerate institutional adoption of cryptocurrencies like Bitcoin. 

How Bitcoin Demand Could Increase 

As more banks and financial institutions embrace Bitcoin, either through ETFs or direct holdings, the asset’s legitimacy and accessibility grow. This institutional interest creates a feedback loop: 

  1. Increased Credibility: Banks’ involvement signals to retail investors that Bitcoin is a credible, long-term investment. 
  2. Broader Access: With banks offering ETFs and custody services, investing in Bitcoin becomes easier for mainstream consumers. 
  3. Market Maturity: Regulatory clarity through measures like SAB 122 strengthens market infrastructure, attracting risk-averse investors. 
Why Invest in Bitcoin Through a Crypto IRA? 

While banks are embracing Bitcoin ETFs, investing directly in Bitcoin offers unique advantages, particularly through a Crypto IRA. By holding crypto in a retirement account, you can: 

  • Diversify Your Portfolio: Add a high-growth asset class to your retirement savings. 
  • Enjoy Tax Advantages: Benefit from tax-deferred or tax-free growth, depending on the type of IRA. 
  • Take Control of Your Investments: Unlike ETFs, direct Bitcoin ownership ensures you hold the actual asset. 

At BitcoinIRA¹, we make it easy to invest in Bitcoin and other cryptocurrencies securely and seamlessly. Our platform combines institutional-grade security², intuitive tools, and tax benefits to help you build a future-proof retirement portfolio. 

Take the Next Step 

The future of finance is here, and Bitcoin is at the forefront. Don’t wait to secure your financial future—open a BitcoinIRA account today and join the thousands of investors who are leveraging the power of cryptocurrency for long-term growth. 

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  1. Bitcoin IRA is a platform that connects consumers to qualified custodians, digital wallets and cryptocurrency exchanges. The company is not a custodian, is not a digital wallet and is not an exchange. The information provided in this article is for educational purposes only. We encourage you to consult an adviser or professional to determine whether Bitcoin IRA makes sense for you.

  2. Security, storage, wallet providers, and insurance may vary based on asset chosen and custody solution available.
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