European Banking Giant BNP Paribas Reports Bitcoin ETF Exposure

BNP Paribas, Europe’s second-largest bank, reported that it holds a certain amount of spot Bitcoin exchange-traded funds (ETFs). According to the 13F filing submitted by the bank, it purchased a total of 1,030 units of BlackRock’s iShares Bitcoin Trust (IBIT), equivalent to an investment of approximately $41,684.

^{The bank’s entry into the cryptocurrency space began in 2022 with a partnership with Metaco to develop a cryptocurrency custody service to facilitate the issuance, transfer and secure storage of clients’ regulated digital assets.}

^{Since then, BNP Paribas has been making strategic investments in the sector to support the development of start-ups in the rapidly growing digital economy.}

^{It is worth noting that BNP Paribas, together with Goldman Sachs, led a major investment of US$100 million in Fnality International last year. Fnality International is a company that specializes in utilizing blockchain technology to enable secure and efficient cash transfer services between financial institutions.}

^{BNP Paribas’ recent investment in a spot Bitcoin ETF coincides with the current decline in institutional adoption of the fund. On Thursday, total outflows from investment vehicles such as Bitcoin ETFs reached $563.7 million, setting a record for the highest single-day outflow since the launch of such products in January.}

^{Fidelity’s Bitcoin ETF (FBTC) recently saw more than $191 million in outflows, making it the fund with the most capital withdrawals. Grayscale’s Bitcoin Trust (GBTC) net outflows followed, reaching $167.3 million.}

^{Institutional debate on Bitcoin ETF}

^{The low institutional adoption of Bitcoin ETFs has sparked heated discussions in the crypto community. Jim Bianco of Bianco Research believes that institutional investors are reluctant to invest in Bitcoin ETFs because they are unattractive.}

^{The relatively low institutional adoption of Bitcoin ETFs (Exchange Traded Funds) has been much discussed in X’s cryptocurrency community. Jim Bianco, an analyst at Bianco Research, believes that the reason why institutional investors are cautious about investing in Bitcoin ETFs is mainly because they feel that such ETF products lack sufficient appeal.}

^{In response, Bloomberg’s senior ETF analyst Eric Balchunas countered Bianco’s sentiments, arguing that Bitcoin ETF products are expected to gain wider acceptance once investment advisors begin submitting their 13F filings this month. use.}

^{Balchunas emphasized that although most investment advisers have not yet filed their 13Fs, approximately 150 advisers from across the country have reported their holdings of spot ETFs.}

^{He wrote on}

Eric Balchunas predicts that as investment advisers continue to submit 13F documents, a large number of institutional advisers will choose to invest in Bitcoin ETFs. He predicts that by May 15, more than 500 advisers will report that they hold Bitcoin ETFs. shares.

Eric Balchunas said that strong interest in Bitcoin ETFs from investment advisors may push this market to a new record in the first three months of the year, which may herald a potential turning point in the adoption of Bitcoin ETFs by institutional investors. . If this prediction comes true, it will mark a significant change in the attitude and behavioral patterns of institutional investors toward Bitcoin ETFs, which could have far-reaching consequences for the entire cryptocurrency market.

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