BNP Paribas disclosure IBIT purchase as BlackRock anticipates sovereign, pension funds to start buying Bitcoin ETFs BNP Paribas disclosure IBIT purchase as BlackRock anticipates sovereign, pension funds to start buying Bitcoin ETFs
Meanwhile, BlackRock's top executive said the firm is seeing a resurgence in interest from sovereign wealth funds.
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Updated: May. 7, 2024 at 1:08 am UTC
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French banking giant BNP Paribas disclosed it has begun purchasing shares of BlackRock’s iShares Bitcoin Trust (IBIT) and currently holds a small exposure to Bitcoin through the ETF.
The firm’s latest 13F filing, dated May 1, indicates that the bank holds 1,030 shares of IBIT and values the shares at $41,684.
BNP Paribas’ IBIT investment represents a tiny portion of its overall investments, which the latest filing reports as $113.8 billion.
Sovereign funds
BNP Paribas’ reported investment comes alongside statements from BlackRock that predict growing institutional investments in spot Bitcoin ETFs.
In a May 2 statement to Coindesk, BlackRock head of digital assets Robert Mitchnick said that financial institutions, including pensions, endowments, sovereign wealth funds, insurers, asset managers, and family offices, may begin to invest in spot Bitcoin ETFs.
Mitchnick said that his firm has seen “a re-initiation of the discussion around bitcoin,” or how companies allocate BTC within their portfolios.
He added that various companies are engaged in “ongoing diligence and research conversations” and emphasized BlackRock’s role in education.
Investment within months
Mitchnick said that each type of institution could start trading spot Bitcoin ETFs in the coming months and said BlackRock has been discussing Bitcoin with institutions for several years.
BNP Paribas represents a potential start to the trend.
The bank is the second-largest in Europe in terms of assets and, as of 2022, was the ninth-largest bank in the world. As such, its purchase of BlackRock’s iShares Bitcoin Trust represents interest from a notable company despite the investment’s modest size.
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Mike Dalton
Before transitioning to crypto writing in 2018, Mike studied library and information sciences. Currently, he resides on Canada's West Coast.
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BNP Paribas
BNP Paribas is a leading international banking group headquartered in France.
BlackRock
BlackRock, synonymous with global asset management, is an American multinational investment management corporation based in New York City.
The BlackRock Bitcoin ETF, known as the iShares Bitcoin Trust (IBIT), is an investment fund that provides regulated exposure to Bitcoin for investors.