BNP Paribas, the second largest bank in Europe, reported that it holds a certain amount of spot Bitcoin exchange-traded funds (ETFs). According to the 13F filing submitted by the bank, it purchased a total of 1,030 units of the iShares Bitcoin Trust (IBIT) under BlackRock, equivalent to an investment of approximately $41,684.

The bank’s entry into the cryptocurrency space began in 2022 with a partnership with Metaco to develop a cryptocurrency custody service to facilitate the issuance, transfer and secure storage of clients’ regulated digital assets.

Since then, BNP Paribas has been investing strategically in the sector to support start-ups in the fast-growing digital economy.

Notably, BNP Paribas, along with Goldman Sachs, led a major $100 million investment last year in Fnality International, a company that specializes in using blockchain technology to enable secure and efficient cash transfer services between financial institutions.

BNP Paribas’ recent investment in a spot Bitcoin ETF comes at a time when institutional adoption of funds is declining. On Thursday, total outflows from such investment vehicles reached $563.7 million, the highest single-day outflow since the launch of such products in January.

Fidelity's Bitcoin ETF (FBTC) recently saw an outflow of more than $191 million, becoming the fund with the most outflows. Grayscale's Bitcoin Trust (GBTC) also followed closely with a net outflow of $167.3 million.

Institutional debate on Bitcoin ETFs

The low institutional adoption rate of Bitcoin ETFs has sparked heated discussions in the crypto community. Jim Bianco of Bianco Research believes that institutional investors are reluctant to invest in Bitcoin ETFs because of their lack of attractiveness.

The relatively low institutional adoption of Bitcoin ETFs (Exchange Traded Funds) has been widely discussed in the cryptocurrency community. Jim Bianco, an analyst at Bianco Research, believes that institutional investors are cautious about investing in Bitcoin ETFs mainly because they feel that such ETF products lack sufficient appeal.

In response, Eric Balchunas, senior ETF analyst at Bloomberg, countered Bianco’s sentiments, arguing that Bitcoin ETF products are expected to see wider adoption once investment advisors begin filing their 13F filings this month.

Balchunas noted that while most investment advisors’ 13Fs have not yet been filed, about 150 advisors from around the country have reported their holdings in cash ETFs.

“Most 13Fs have not yet been filed, but about 150 advisors (from around the country) have already reported that they own cash ETFs,” he wrote on X.

Eric Balchunas expects that as investment advisors continue to submit 13F documents, a large number of institutional advisors will choose to invest in Bitcoin ETFs. He predicts that by May 15, more than 500 advisors will report that they hold shares in Bitcoin ETFs.

Eric Balchunas said that strong interest in Bitcoin ETFs from investment advisors may push this market to a new record in the first three months of the year, which may herald a potential turning point in the adoption of Bitcoin ETFs by institutional investors. If this prediction comes true, it will mark a significant change in the attitude and behavioral patterns of institutional investors toward Bitcoin ETFs, which could have far-reaching consequences for the entire cryptocurrency market. #加密货币期权 #期权到期