According to regulatory filings, Wells Fargo & Company (W.F.C. – Free Report) has announced its exposure to cryptocurrencies through investments in a number of Bitcoin exchange traded funds (ETFs). The move shows growing interest in digital assets among financial institutions.
Wells Fargo bought shares in Grayscale’s GBTC Spot Bitcoin ETF, giving the bank $141,817 in exposure to the digital asset, according to filings. Additionally, Wells Fargo has invested less than $1,200 in the ProShares Bitcoin Strategy ETF (BITO). This allows investors to take advantage of Bitcoin futures contracts, making it easier to speculate on the virtual currency’s future price movements.
In addition, the bank has $99 exposure to Bitcoin ATM provider Bitcoin Depot Inc. Although the company has expanded into the cryptocurrency space, its investments in these vehicles are relatively small.
The filing follows news that WFC is offering its wealth management customers the opportunity to invest in Bitcoin ETFs through their brokerage accounts.
The company’s Wealth and Investment Management division provides personalized wealth management, brokerage, financial planning, lending, private banking, trust and fiduciary products to high net worth, high net worth and ultra high net worth clients. and provides services.
In its last reported quarter, WFC reported total revenue from this segment of $3.7 billion, representing a 2% year-over-year increase. Additionally, total customer assets totaled $2.18 trillion, an increase of 13% year-on-year.
But Wells Fargo is having trouble increasing its total revenue. Revenues over the past four years (2019-2023) have recorded negative growth at a compound annual growth rate of 1.2% for him. This indicator rose in the first quarter of 2024, but will be similarly affected in the next period due to rising financing costs.
Business sales also resulted in a loss of revenue. Specifically, Wells Fargo sold approximately $2 billion of private equity investments in certain funds to a group of large investors in September 2023. Additionally, fluctuations in fee income continue to impact top-line results. Management expects 2024 net interest income (NII) to decline 7% to 9% from 2023’s $52.4 billion.
Over the past six months, WFC stock has increased by 45.6%, compared to the industry’s growth rate of 32.8%.
WFC currently sports a Zacks Rank #1 (Strong Buy).
Other stocks to consider
Other top stocks in the financial sector include: Northern Trust Co., Ltd. (NTRS – free report) and UMB Financial Co., Ltd. (UMBF – Free Report), each currently sporting a Zacks Rank #1.You can see See the complete list of today’s Zacks #1 Rank stocks here.
NTRS’s 2024 profit forecast has increased by 7.4% over the past month. Northern Trust’s stock price has increased by 16.3% over the past six months.
UMBF’s 2024 earnings estimate has increased by 14.4% over the past 30 days. UMB Financial’s stock price has increased by 16.1% in the past six months.
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