While traditional banks have typically kept their distance from cryptocurrency, the Bank of Montreal just made a dramatic entrance into the Bitcoin ETF space. Through a mandatory SEC filing, BMO revealed a whopping $150 million investment in Bitcoin ETFs – and they weren’t exactly shouting it from the rooftops.
The numbers tell quite a story. BMO dumped $139 million into BlackRock’s iShares Bitcoin ETF (IBIT), which already manages a staggering $57.03 billion in assets. The remaining $11 million? Sprinkled across other providers like Ark 21Shares, Grayscale, and Fidelity. Oh, and there’s a cute little $17,000 toe-dip into ProShares Bitcoin futures ETF. Talk about keeping your options open.
This isn’t just another day at the office for Canada’s third-largest bank. We’re talking about a mind-bending 1000% increase from their previous quarter’s crypto exposure. And they chose to do it through the most buttoned-up vehicle possible: regulated ETFs. Smart move. Very banker-like. The CME CF Reference Rate helps ensure accurate Bitcoin price tracking across these investments.
The strategy here is crystal clear: stick with the big players while maintaining just enough diversification to look prudent. BlackRock’s ETF got the lion’s share because, well, it’s BlackRock. When you’re dealing with institutional money, liquidity matters. A lot. The investment heavily favors spot Bitcoin ETF products over futures positions. The Form 13F-HR filing was submitted to the SEC on February 14, 2025, making this major move completely transparent.
What’s really interesting is what this means for the broader market. When a conservative institution like BMO starts throwing serious cash at Bitcoin ETFs, others notice. It’s like getting a stamp of approval from your strictest teacher – suddenly everyone feels a bit more comfortable breaking the rules.
This move could open the floodgates for other traditional banks and institutional investors who’ve been watching from the sidelines. The crypto world is changing, and fast. Gone are the days when Bitcoin was just for tech geeks and risk-loving traders. Now it’s suited bankers and their Excel spreadsheets. Who would’ve thought?
BMO’s quiet but massive investment might just be the push other institutions needed to jump on the Bitcoin ETF bandwagon.
