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first_img Bank of New York Mellon increased its stake in Strive by 28%, raising its holdings to 6.97 million USD

According to Bitcoin Magazine, as disclosed in the 13F filing submitted on November 5, Bank of New York Mellon (BNY Mellon) increased its holdings in Bitcoin treasury company Strive (ASST) by 28% in the third quarter, bringing the total to 237,100 shares, valued at $6.97 million based on the price as of September 30.Compared to the 185,556 shares disclosed on June 30, this increase of 51,544 shares had a market value of approximately $2.02 million at that time. The increase in market value was mainly due to the stock price: the implied ASST price in the two filings rose from $10.91 on June 30 to $29.41 on September 30, resulting in a more than doubling of the disclosed market value alongside a 28% increase in the number of shares held.The 13F is a snapshot at a point in time rather than a trading record. Bank of New York Mellon submitted a consolidated report covering group-level holdings, so Strive's position may include client, fund, and discretionary accounts, rather than a single proprietary bet, and the bank may have adjusted its holdings after September 30.As of September 30, the bank's assets under custody and administration amounted to $63.4 trillion, with managed assets totaling $2.2 trillion. In the same report, its Bitcoin-related positions also included 1,056,230 shares of Strategy (MSTR), valued at $161.7 million, and 162,072 shares of BlackRock iShares Bitcoin Trust (IBIT), valued at $7.67 million, the latter nearly doubling from 85,282 shares as of June 30.According to regulations, institutions with investment decision-making authority over securities exceeding $100 million must disclose their holdings within 45 days after the end of the quarter, with this quarter's window extending to November 16 due to November 14 falling on a Saturday.JPMorgan submitted its third-quarter 13F this Thursday, while Wells Fargo, Millennium Management, and Schonfeld Strategic Advisors had not yet appeared in the SEC's EDGAR system as of Thursday morning.Among the disclosed banks, Barclays reported holding 3,942,900 shares of IBIT, valued at $186.7 million, an increase of 48% from 2,658,147 shares three months ago, in a filing on November 6; Citigroup reported holding 521,144 shares of IBIT, valued at $24.7 million, in a filing on November 4, and added 1,636,387 shares of Fidelity Wise Origin Bitcoin Fund (FBTC), valued at $118.9 million. Strive itself increased its holdings by 29 Bitcoins in the week ending November 6, bringing its total holdings to 43,153 Bitcoins.

BlackRock has recorded a $3.6 billion IBIT physical conversion: security considerations have become the main driver

According to Barron's, Robbie Mitchnick, head of BlackRock's digital asset business, stated that since regulators approved the physical creation and redemption of crypto assets last year, the company has recorded approximately $3.6 billion in physical conversions of directly held Bitcoin into shares of its spot Bitcoin ETF, IBIT. Since BlackRock does not handle all transactions itself and may not see every conversion, the actual scale may be larger.BlackRock also provides physical conversions for the iShares Ethereum Trust ETF and the iShares Staked Ethereum Trust ETF, but the related scale is much smaller than IBIT. Mitchnick noted that demand continues to rise, and this is currently the highest level of interest the company has seen, which does not change with Bitcoin price fluctuations. The primary motivation is security and peace of mind. Outsourcing custody to an institutional-grade cold storage model is more attractive for holders; holding ETF shares managed by large fund managers is generally seen as less risky than placing assets on crypto trading platforms or in always-online hot wallets.He mentioned that the recent hacking incident at Binance has once again highlighted the risks of trading platforms, although large Bitcoin holders have long understood these risks. The minimum threshold for physical conversions has been reduced from the initial approximately $30 million to about $1 million to $2 million, with the threshold set by intermediary firms facilitating the transactions, such as Galaxy Digital, Talos, and Virtu. Mitchnick expressed hope that the threshold could be lowered to a single ETF share, but the cost structure is unlikely to drop to zero in the short term.
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