European Bank with $600 Billion AUM Invests in BlackRock’s IBIT
US Spot Bitcoin ETFs have been reporting massive outflows lately. However, institutional investors are moving towards adopting these funds. The newest of these is BNP Paribas, the second largest bank in Europe. BNP Paribas invested in BlackRock’s iShares Bitcoin Trust (IBIT).
BNP Paribas Gets Exposure to Bitcoin Through BlackRock’s IBIT
According to the latest 13F filing filed on Wednesday, May 1, BNP Paribas announced that it invested $41,684 in the BlackRock Bitcoin ETF by purchasing 1,030 units. Although the investment is not large, it serves as a stepping stone towards the bank’s adoption of Bitcoin. Moreover, the European bank boasts a whopping $600 billion in assets under management (AUM), making the development even more significant.
Additionally, this move coincides with the prediction of Bloomberg Senior ETF analyst Eric Balchunas. Earlier this week, Balchunas took to X and countered Jim Bianco’s claims that institutional adoption of Bitcoin ETFs is low. The analyst noted that many investment advisors and other institutional investors have not yet submitted 13F applications for the first quarter of 2024.
Additionally, Balchunas stated that he expects more than 500 investment advisors to disclose their assets by May 15, the deadline for 13F applications. Therefore, the latest announcement by BNP Paribas confirms that institutional adoption of Bitcoin ETFs will increase rapidly.
It is also worth noting that City Holding Co., a subsidiary of the Royal Bank of Canada with $6 billion AUM, invested in Grayscale Bitcoin Trust (GBTC) in April. According to its 13F filing dated April 11, 2024, the subsidiary acquired 100 units of Grayscale Bitcoin ETF.
Spot Bitcoin ETFs Record Massive $563 Million Outflow
Following the last FOMC meeting chaired by Jerome Powell, where interest rates remained unchanged, US Spot Bitcoin ETFs experienced a significant outflow of over $560 million on May 1. Additionally, the announcement contributed to another 5% drop in Bitcoin price. Below $57,500.
Spot Bitcoin ETFs saw a significant net outflow of $563.7 million on Wednesday, according to data provided by Farside investors. Notably, BlackRock’s IBIT ETF has witnessed its debut totaling $37 million since its inception.
Additionally, Fidelity’s FBTC led the exit with a staggering $191 million, outpacing Grayscale’s GBTC, which recorded an exit of $167 million. For the first time, all Spot Bitcoin ETFs in the United States reported net outflows on the same day, underscoring the intensifying selling pressure in the market.
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