BNP Paribas, the second largest European bank, has made a significant move by purchasing exposure to Bitcoin via a spot ETF, according to recent 13F filings with the SEC. The bank bought BlackRock’s iShares Bitcoin Trust ETF (IBIT), joining a growing list of institutional investors getting involved in the cryptocurrency space.
The success of U.S. spot Bitcoin ETFs, which have crossed $200 billion in cumulative volume since their launch earlier this year, has caught the attention of large institutional investors. Under regulations, institutions managing over $100 million must disclose their quarterly holdings, providing insight into their Bitcoin allocations.
Previous filings for the first quarter of 2024 revealed purchases by various asset managers, family offices, and banks, including Park Avenue Securities, Inscription Capital, Wedbush Private Capital, and American National Bank. Now, with BNP Paribas entering the fray, the trend of traditional financial institutions embracing Bitcoin appears to be gaining momentum.
Analysts anticipate more institutional participation in spot Bitcoin ETFs as additional 13F filings are released before the May 15 deadline. The growing acceptance of Bitcoin among traditional finance players could pave the way for wider mainstream adoption and increased inflows into regulated Bitcoin investment vehicles.
While Bitcoin ETF purchases currently represent a small portion of institutional portfolios, the involvement of major banks like BNP Paribas signals a shift in the perception of Bitcoin as a legitimate asset class. As more old-guard institutions disclose their Bitcoin allocations, the cryptocurrency could see further validation and support from the traditional financial sector.
