By purchasing 1,030 units of the BlackRock Bitcoin ETF, BNP Paribas has invested $41,684 in the cryptocurrency venture. This move by the European banking giant is significant, given its vast assets under management totaling $600 billion. While there have been reports of substantial withdrawals from U.S. Spot Bitcoin ETFs, prominent institutions like BNP Paribas are now delving into these investment opportunities. Among its recent allocations, the bank has put capital into the iShares Bitcoin Trust (IBIT) offered by BlackRock.

This recent step taken by BNP Paribas marks a shift towards embracing Bitcoin, despite the relatively small initial investment amount of $41,684 in the BlackRock Bitcoin ETF. The significance of this move is magnified by the European bank's massive assets under management, amounting to $600 billion.

Rising Institutional Investments

The move by BNP Paribas aligns with predictions made by Eric Balchunas, a senior ETF analyst at Bloomberg, who remarked on the growing institutional interest in Bitcoin ETFs. Contrary to Jim Bianco's skepticism about institutional acceptance of Bitcoin ETFs, Balchunas noted an evolving trend among investment advisers and institutional investors. Notably, many investment advisers are yet to disclose their first quarter 2024 assets through 13F forms, highlighting a potential surge in institutional investments in Bitcoin ETFs.

Balchunas anticipates over 500 investment advisers to reveal their assets in the upcoming 13F reporting deadline on May 15, suggesting a substantial increase in institutional involvement in Bitcoin ETFs. The recent disclosure from BNP Paribas reaffirms this notion, indicating a significant shift towards institutional investments in the cryptocurrency sector.

Furthermore, in an intriguing development, City Holding Co., a subsidiary of Royal Bank of Canada managing $6 billion in assets, invested in the Grayscale Bitcoin Trust (GBTC) in April. The subsidiary purchased one hundred units of the Grayscale Bitcoin ETF, as detailed in a 13F filing on April 11, 2024.