BNP Paribas Invests in BlackRock Bitcoin ETF Shares: SEC Filing Reveals

BNP Paribas, the second-largest European bank, disclosed its purchase of shares in BlackRock's iShares Bitcoin Trust (IBIT) through a form 13F filing with the U.S. Securities and Exchange Commission (SEC).

According to the filing, BNP Paribas acquired 1,030 IBIT shares in the first quarter of 2024, priced at $40.47 per share, totaling $41,684.10.

BNP Paribas' IBIT Acquisition: Institutional Validation for Bitcoin ETFs

Despite constituting a relatively small fraction of its investment portfolio, BNP Paribas' acquisition of IBIT shares signifies a notable move by a major financial institution into the realm of spot Bitcoin ETFs.

The purchase adds validation to the anticipation that institutional investors would show interest in Bitcoin exchange-traded funds.

Regulatory Disclosure: 13F Reporting Requirements for Institutional Investment Managers

Institutional investment managers with assets exceeding $100 million are mandated to submit quarterly 13F reports to the SEC, which includes disclosure of their investment activities. This regulatory requirement extends to foreign banks like BNP Paribas when conducting transactions in the U.S.

Navigating Institutional Adoption: Insights from Goldman Sachs and Bitwise

A report from Goldman Sachs following the SEC's approval of spot Bitcoin ETFs cautioned that institutional adoption might not be immediate, a sentiment echoed by Matt Hougan of Bitwise, who highlighted the gradual nature of the institutional due diligence process.

Since their launch, Bitcoin ETFs have attracted $11.2 billion in net inflows, despite significant outflows from the Grayscale Bitcoin Trust (GBTC).

Outflows from Bitcoin ETFs Amidst Fed Rate Decision

Recent days have witnessed consistent outflows from Bitcoin ETFs, amounting to over $563 million, coinciding with the U.S. Federal Reserve's decision to maintain unchanged interest rates, prompting investors to retreat from risk assets such as stocks and cryptocurrencies.

Shift in Stance

BNP Paribas' decision to invest in Bitcoin ETFs contrasts with its previous stance on cryptocurrencies, as articulated by Sandro Pierri in September 2022, where the firm expressed disinterest in cryptocurrencies due to perceived lack of client demand.