Yong Rong Asset Management, a company based in Hong Kong, has bought $38 million in shares of BlackRock’s iShares Bitcoin Trust (IBIT), as reported by Eric Balchunas, the senior ETF analyst at Bloomberg. This purchase accounts for 12% of the total holdings of the fund, even with the introduction of cryptocurrency ETFs in Hong Kong recently. BNP Paribas, Europe’s biggest banking group, has also revealed that it holds a small number of IBIT shares, showing a trend towards increased acceptance of cryptocurrency.

Yong Rong Asset Management Makes a Significant Investment in Bitcoin ETF

The decision of Yong Rong Asset Management to acquire $38 million worth of shares in BlackRock’s iShares Bitcoin Trust (IBIT) represents a significant step towards the mainstream adoption of cryptocurrency. Despite the availability of cryptocurrency ETFs in Hong Kong, the company chose to invest in a U.S.-based Bitcoin ETF due to its lower fees and higher trading volume.

BNP Paribas and the Acceptance of Cryptocurrency

BNP Paribas, the largest banking group in Europe, has disclosed its ownership of a small number of IBIT shares, indicating the growing acceptance of cryptocurrency in mainstream finance. According to CoinOtag, BlackRock’s IBIT recently experienced its first period of outflows on May 2 after 73 days of inflows. Despite this, BlackRock remains positive about the future of Bitcoin ETFs.

BlackRock’s Confidence in Bitcoin ETFs

Robert Mitchnick, BlackRock's head of digital assets, remains optimistic about the potential of IBIT to attract investments from institutional investors, including sovereign wealth funds. These institutions are currently conducting their due diligence and have been in discussions with BlackRock about Bitcoin for some time now.

In Conclusion

The substantial investment made by Yong Rong Asset Management and BNP Paribas in BlackRock’s iShares Bitcoin Trust (IBIT) demonstrates a growing trend toward embracing cryptocurrency in the mainstream financial world. Despite recent market fluctuations, major financial institutions like BlackRock continue to have faith in the future of Bitcoin ETFs and anticipate a surge in investments from institutional players soon.