Matthew Sigel, head of digital assets research at VanEck, reported today on X that Citi Wealth has published a new report titled “Expanding the Investable Universe: Introduction to Crypto ETFs.” Sigel noted that the report “pitches spot BTC and ETH ETFs as the regulated, brokerage-account way for suitable clients to add digital assets alongside stocks and bonds.” He also highlighted that Citi announced on August 18 its new Custody+ platform would begin holding Bitcoin for institutional clients this year. Sigel stated that this development would make Citi the “6th of 29 G-SIBs (systemically important banks) to have institutional bitcoin custody live or announced, after BNY, Standard Chartered, Société Générale, State Street and Deutsche Bank.”
The move by Citi follows a period of significant activity in the crypto ETF and custody space. Bitcoin Spot ETFs have recently experienced outflows, including a $643 million outflow following a Binance breach that triggered risk repricing, according to recent Gokhshtein Media coverage. Ethereum ETFs have also seen a 23-session outflow streak as institutional buyers pull back. Despite these recent market movements, the entry of major financial institutions into the digital asset custody and ETF market signals continued long-term interest.
Sigel's analysis implies a continued trend of traditional financial institutions integrating digital assets into their offerings. The increasing number of G-SIBs providing Bitcoin custody suggests a growing acceptance and infrastructure for institutional involvement in the crypto market. While some institutions like JPMorgan have kept custody off the table, the expansion by others like BNY, Standard Chartered, and Société Générale, which are already licensed, indicates a bifurcated but progressing institutional adoption curve for digital assets.
