Crypto ETPs Lead as 24 Financial Giants Expand Regulated Crypto Services
Bitwise data says 24 major financial institutions are now active in crypto across regulated markets, covering trading, custody, private funds, payments, tokenization, and exchange-traded products (ETPs). The report points to crypto ETPs as the broadest and most scalable route for institutional exposure.
Key highlights include:
- Crypto ETP access widening: Bank of America’s Merrill now offers spot Bitcoin ETP access to wealth management clients. Vanguard also allows brokerage clients to trade crypto ETPs after previously restricting bitcoin ETFs. Listed in the ETP category are BlackRock, Fidelity, Franklin Templeton, Morgan Stanley, UBS, and Wells Fargo.
- Institutional infrastructure upgrades: BNY Mellon integrated digital-asset custody into core infrastructure. Deutsche Bank expanded custody via a partnership with Taurus. Trading and market infrastructure support includes Cboe, Charles Schwab, CME Group, DBS, Deutsche Börse, Goldman Sachs, HSBC, Interactive Brokers, and the London Stock Exchange.
- Tokenization and payments move closer to traditional finance: BlackRock’s BUIDL fund and Franklin Templeton’s on-chain fund activity show tokenized fund/liquidity use. Banks are also testing blockchain settlement and asset issuance (e.g., Citi Token Services, JPMorgan’s Kinexys, HSBC Orion, UBS uMINT, Société Générale FORGE). On payments, Citi, BNY Mellon, DBS, Deutsche Bank, HSBC, JPMorgan Chase, Mastercard, Société Générale, UBS, and Visa are highlighted, including Visa’s stablecoin settlement exploration and Mastercard’s Multi-Token Network.
Regulatory backdrop: the Senate Banking Committee scheduled a May 14 markup for the CLARITY Act.
For traders, the message is that regulated crypto ETPs are deepening demand channels, while tokenization and custody build the plumbing behind future inflows.
Bullish
This is bullish mainly because it signals a widening, regulated demand channel for crypto—especially via crypto ETPs—reducing friction for wealth managers and brokerages. When large banks and asset managers add ETP access (e.g., Bank of America/Merrill and Vanguard opening doors), it often precedes steadier inflow narratives rather than one-off hype.
In the short term, the news can support sentiment around BTC as ETP access expands and reinforces “institutional bid” expectations. In the long term, the emphasis on custody integration, tokenized funds, and blockchain settlement/payments suggests that the market’s plumbing is improving—often associated with more resilient participation during volatility.
A parallel can be drawn to past ETP/ETF approval cycles: initial headline-driven spikes were common, but the bigger structural effect came when mainstream intermediaries (brokers, wealth platforms) made allocation operational and repeatable. The upcoming CLARITY Act markup also adds a probability of clearer rules, which can further lower perceived regulatory risk over time.