French banking behemoth BNP Paribas revealed it has initiated the acquisition of shares in BlackRock’s iShares Bitcoin Trust (IBIT) and currently maintains a minor exposure to Bitcoin through this ETF.

According to the latest 13F filing dated May 1, the bank holds 1,030 shares of IBIT, valuing them at $41,684.

BNP Paribas' investment in IBIT constitutes a small fraction of its total investments, as indicated by the filing, which reports the bank's total investments at $113.8 billion.

Sovereign funds

BNP Paribas' disclosed investment coincides with statements from BlackRock anticipating increased institutional investments in spot Bitcoin ETFs.

In a May 2 statement to Coindesk, BlackRock's head of digital assets, Robert Mitchnick, mentioned that financial institutions such as pensions, endowments, sovereign wealth funds, insurers, asset managers, and family offices may consider investing in spot Bitcoin ETFs.

Mitchnick noted a resurgence in discussions surrounding Bitcoin and how companies incorporate BTC into their portfolios, highlighting ongoing research and educational efforts by BlackRock.

Investment in the near future

Mitchnick suggested that various institutions could begin trading spot Bitcoin ETFs in the coming months, citing BlackRock's extensive discussions on Bitcoin with institutions over several years.

BNP Paribas' move signals a potential initiation of this trend.

As the second-largest bank in Europe by assets and the ninth-largest globally as of 2022, BNP Paribas' purchase of BlackRock's iShares Bitcoin Trust signifies interest from a significant player despite the relatively small size of the investment.