The Bitcoin Exchange-Traded Fund (ETF) market continues to gain institutional traction, with PNC Bank, the 8th largest bank in the U.S., officially disclosing $67 million in BTC ETF exposure.
According to its 13F filing with the SEC, PNC, which manages $325 billion in assets, significantly increased its Bitcoin ETF holdings from $10 million to $67 million over the past year. The bank's investment is primarily allocated to the Bitwise Bitcoin ETF (BITB).
This development further solidifies the growing institutional interest in Bitcoin ETFs, with major financial players recognizing BTC as a legitimate asset class.
Institutional Adoption of Bitcoin ETFs Soars
PNC’s move aligns with a broader trend among leading financial institutions, with Wells Fargo, Morgan Stanley, and BNP Paribas also increasing their Bitcoin ETF exposure.
Additionally, BlackRock, the world’s largest asset manager, has also expanded its stake in iShares Bitcoin Trust (IBIT). Data from former Sequoia Capital analyst Julian Fahrer shows that BlackRock's IBIT allocation has surged from $92 million in November 2024 to $140 million today.
Bitcoin ETFs See Record Inflows – $40.5 Billion and Growing
Bitcoin ETFs have witnessed record-breaking inflows since their launch. According to Farside Investors, BTC ETFs have attracted $40.5 billion in total inflows, outpacing other asset classes like gold ETFs in their early stages.
The surge in institutional demand signals increasing confidence in Bitcoin as an investment vehicle, with fund managers eyeing new features such as in-kind redemption.
BlackRock & Fidelity Push for In-Kind Redemption
BlackRock recently submitted a request to the U.S. SEC to implement in-kind redemption for IBIT. Currently, BTC ETFs operate on a cash redemption model, meaning investors receive their proceeds in USD rather than Bitcoin.
If approved, in-kind redemption would allow direct BTC payouts, potentially revolutionizing ETF liquidity and further increasing institutional adoption. Fidelity Investments is also considering a similar move, indicating a paradigm shift in Bitcoin ETF structures.
Limited Bitcoin Supply – Rising Demand from Institutions
With institutional investors ramping up Bitcoin purchases, concerns about limited supply are surfacing.
Bitcoin miners currently generate only 450 BTC per day, while demand from ETF issuers far outweighs supply. This trend could drive Bitcoin prices higher as competition for available BTC intensifies.
MicroStrategy, now rebranded as Strategy, continues to lead corporate Bitcoin accumulation. The firm, led by Michael Saylor, has amassed 471,107 BTC, accounting for over 2.5% of Bitcoin’s total circulating supply.
What’s Next for Bitcoin?
As state and federal governments continue embracing Bitcoin-friendly policies, institutional adoption is expected to accelerate. With growing ETF inflows, increasing bank participation, and rising competition for Bitcoin’s limited supply, analysts predict a major price upside for BTC in the coming years.
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