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BNP Paribas Invests in BlackRock’s iShares Bitcoin Trust
French banking giant BNP Paribas recently revealed its decision to acquire shares of BlackRock’s iShares Bitcoin Trust (IBIT), marking its entry into the realm of Bitcoin investments. The firm, in its latest 13F filing dated May 1, disclosed that it currently holds 1,030 shares of IBIT with a valuation of $41,684. Although this investment constitutes only a small fraction of BNP Paribas’ extensive portfolio, which is reported to be $113.8 billion, it signifies a significant move towards embracing digital assets.
Sovereign Funds and Institutional Investments
BNP Paribas’ investment in IBIT aligns with statements made by BlackRock, a global investment management corporation, that forecast an increase in institutional investments in Bitcoin exchange-traded funds (ETFs). Robert Mitchnick, the head of digital assets at BlackRock, emphasized in a statement on May 2 to Coindesk that a diverse range of financial institutions, including pensions, endowments, sovereign wealth funds, insurers, asset managers, and family offices, are considering investments in spot Bitcoin ETFs.
Mitchnick highlighted the resurgence of interest in Bitcoin among companies, noting the ongoing discussions regarding the inclusion of BTC in their portfolios. He mentioned that numerous entities are currently conducting research and due diligence, with BlackRock playing a crucial role in providing educational resources on the topic.
Anticipated Institutional Adoption
According to Mitchnick, various types of institutions are poised to begin trading spot Bitcoin ETFs in the near future, following years of dialogue and preparation. While BNP Paribas’ venture into the world of digital assets may mark the initial stages of this anticipated trend, its significance should not be understated. As the second-largest bank in Europe by assets and one of the top ten banks globally, BNP Paribas’ foray into the realm of Bitcoin investments underscores the growing interest among prominent financial entities.
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