Multinational bank BNP Paribas has purchased a stake in BlackRock’s iShares Bitcoin Trust (IBIT), according to a Form 13F filing with the US Securities and Exchange Commission (SEC).
According to the company, 13F report BNP Paribas purchased 1,030 IBIT shares in the first quarter of 2024 at $40.47 per share for a total of $41,684.10, less than the value of one share, according to a May 1 filing. do not have. Bitcoinat current prices.
of second largest bank BNP Paribas allocates a relatively small portion of its asset-based investment portfolio in Europe to IBIT. Nevertheless, this is one of the first verified occasions for a major financial institution to buy shares in a Spot Bitcoin ETF, at least partially validating the theory that institutional investors are drawn to Bitcoin exchange-traded funds. This is to be verified.
Institutional investors with assets worth at least $100 million at their discretion are required to file quarterly 13F reports with the Securities and Exchange Commission. Banks and fund managers are required to submit their reports within up to 45 days after the end of the quarter. This includes foreign banks like BNP Paribas that do business in the US, such as buying ETFs from US issuers.
A Goldman Sachs report released shortly after the U.S. SEC approved multiple spot Bitcoin ETFs in January concluded that “time-to-market and overall institutional demand may not be immediate.” “It’s sexual,” he warned.
This argument is corroborated by Matt Hogan, chief investment officer (CIO) of crypto index fund manager Bitwise, who says, “The truth is, most professional investors still don’t invest in Bitcoin ETFs. “That will change over a series of over 100 investments,” he said. We will conduct a separate due diligence process over the next two years. ”
Since its inception in January, Bitcoin ETFs have generated $11.2 billion in net inflows, according to data from . far side investordespite outflows from the Grayscale Bitcoin Trust (GBTC) exceeding $17.4 billion.
Bitcoin ETFs have been experiencing consistent outflows in recent days, with net outflows exceeding $563 million yesterday alone. The cash outflow occurred after the US Federal Reserve (Fed) chose to keep interest rates on hold, causing investors to avoid risky assets such as stocks and cryptocurrencies.
BNP Paribas’ decision to invest in a Bitcoin ETF represents a shift of sorts.
In September 2022, Sandro Pieri, head of the fund management group BNP Paribas Asset Management, said: said“We are not involved in cryptocurrencies, and we do not want to be involved in them,” he said, adding that the company “has not heard significant interest” in cryptocurrencies from its customer base.
Edited by Stacey Elliott.
