European Banking Giant BNP Paribas Buys Shares in Spot Bitcoin ETF

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As a seasoned crypto investor with a keen eye on institutional adoption, I’m thrilled to see BNP Paribas, one of Europe’s largest banks, dip its toes into Bitcoin via a spot exchange-traded fund (ETF). The bank’s decision to allocate a portion of its massive assets under management to Bitcoin marks an important milestone in the crypto industry.

BNP Paribas, Europe‘s second largest bank with over $600 billion in assets managed by its arm specializing in asset management, has acquired access to Bitcoin (BTC), the leading digital currency, through investing in a Bitcoin spot exchange-traded fund.

Based on a recent SEC filing in the form of a 13F, it has come to light that the bank has acquired ownership of BlackRock’s iShares Bitcoin Trust (IBIT) shares, as initially disclosed by Bitcoin Magazine.

As a crypto investor, I’m always on the lookout for insights into the investment strategies of large institutional players in the market. And every quarter, these institutions with over $100 million in assets are required to disclose their holdings through 13F filings. With the recent successful launch of spot Bitcoin exchange-traded funds in the U.S., these filings have become even more closely watched by industry insiders and sleuths like myself, as they offer valuable clues into the institutional adoption of Bitcoin and other digital assets.

Last week, US crypto Exchange-Traded Funds (ETFs) purchased approximately $1.6 billion worth of Bitcoin directly on the blockchain. This equates to an average daily purchase of around $406 million.

— Arkham (@ArkhamIntel) April 2, 2024

In contrast to earlier reports detailing acquisitions by asset managers, family offices, and smaller banks during Q1 2024, BNP Paribas’ involvement represents a significant shift. Although the bank only invested a tiny fraction of its assets in Bitcoin, approximately $40,000 worth.

Institutional investors’ participation in the Bitcoin ETF market could be more evident as analysts expect an increase in 13F filings before May 15th.

According to CryptoGlobe’s latest report, the unstable cryptocurrency market has drawn attention to Bitcoin exchange-traded funds (ETFs), some of which have hit all-time highs in terms of discounts to their net asset value (NAV), following a steep fall in Bitcoin’s price. This situation calls for discussion on the distinct hurdles these financial instruments face in volatile market conditions.

As an ETF analyst, I’ve observed that the current discounts on certain exchange-traded funds (ETFs) aren’t entirely unheard of in the industry. However, their magnitude within the historical context of premiums and discounts for similar funds is noteworthy.

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2024-05-02 15:45