BlackRock caused a stir in the cryptocurrency market when it announced the Bitcoin spot ETF application filing last month. The feat was followed by a slew of financial giants to become the first issuers of a spot Bitcoin ETF in America.

However, SEC officials once again brought down the enthusiasm of the crypto market by pointing out to CBOE and NASDAQ that their ETF applications were lacking. Nevertheless, BlackRock and other financial enterprises are determined to get the blood out of the stone and re-filed their ETF application recently.

It is worth noting that BlackRock is the biggest asset management company in the world. Their second attempt at the Bitcoin spot ETF application is now submitted to SEC via NASDAQ. It is worth noting that BlackRock has named Coinbase as its intermediary crypto exchange partner for the venture.

However, thus far regulators in the country have rejected dozens of spot Bitcoin ETF applications maintaining concerns regarding market manipulation, custodial problems, and investor protection. There are only two Bitcoin futures ETFs in the country that can track the price of Bitcoin from regulated exchanges.

Major US Banks Report Unrealized Losses Worth $205 billion

The big four Banking enterprises in America namely Wells Fargo, JP Morgan Chase, Citigroup, and BofA are navigating through tough times. In March, a series of small and medium-cap banks such as SVB, SilverGate, and Signature filed for bankruptcy.

However, the government came forward to help them cover losses by extending the FDIC coverage range and bailout. However, it seems that the pillaring banking institutions are now underwater.

Recent media reports have claimed that the aforementioned banks have reported accumulated unrealized losses of $205 billion in total.

The banking enterprises have reported that these losses have compiled from the bond market. The report is shared by Financial Times that quoted statistics from Federal Deposit Insurance Corporation (FDIC).

Among all the banks, BofA is getting the largest loss pressure with unrealized losses of $100 billion recorded on its balance sheets alone when wrapping up the first quarter.

Meanwhile, JPMorgan Chase and Wells Fargo sustain $40 billion unrealized losses while Citi accounts for $25 billion in the same category. SVB caused a market panic by announcing that it has sustained $1.8 billion in losses by selling a portion of its bond reserves.

Bank of America Does Not Have Any Plans to Sell its Bonds Portfolio

Bank of America has taken a page out of the SVB saga and it has maintained that it does not garner any plans to sell its bonds portfolio. It can paralyze the firm from reimbursing the losses that it has sustained from the sales deposits.

It means that the bank plans to hold its devalued bonds to avoid the crystallized losses that are currently present only on paper.

The bank intends to retain its portfolio which consists of government-backed securities with a high credit score which means that it will cash out when the cashout date of these underlying loans arrive.

Meanwhile, Federal Reserve has maintained the narrative that Bank of America and other banks in the same ranking have passed the stress test for banking systems. The Central Banking enterprise has waived the lingering threat of reported paper losses.

The test that the Fed chair alluded to is an emulated scenario for banks that mimics the worst economic conditions to check stability and pressure sustenance. This test is conducted by Federal Reserve and it has concluded that the top 23 banks can maintain minimum capital requirements under severe situations such as recession and even bear a projected pressure of $541 billion in losses.

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