Bitcoin ETF Flows Turn Negative As Q2 Begins, Halving Excitement Ends?

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European Bank With $600B AUM Invests In BlackRock’s IBIT – Crypto News

Published

10 months ago

May 2, 2024

Dripp

The U.S. Spot Bitcoin ETFs have been reporting massive outflows lately. However, institutional investors are moving forward to embrace these funds. The most recent one is BNP Paribas, which is the second largest bank in Europe. BNP Paribas has invested in BlackRock’s iShares Bitcoin Trust (IBIT).

BNP Paribas Gets Exposure To Bitcoin Via BlackRock’s IBIT

According to the latest 13F filing, filed on Wednesday, May 1, BNP Paribas revealed investing $41,684 in the BlackRock Bitcoin ETF by purchasing 1,030 units. Though the investment is not large, it serves as a stepping stone for the bank in its pursuit of embracing Bitcoin. Moreover, the European bank boasts a massive $600 billion in the assets under management (AUM), making the development even more significant.

Furthermore, this move aligns with Bloomberg Senior ETF analyst Eric Balchunas’ prediction. Earlier this week, Balchunas took to X and countered Jim Bianco’s claims of low institutional adoption of Bitcoin ETFs. The analyst noted that several investment advisors and other institutional investors are yet to submit their 13F filings for the first quarter of 2024.

Moreover, Balchunas stated that he expects a whopping 500+ investment advisors to disclose their holdings by May 15, which is the deadline for 13F filings. Hence, the latest disclosure by BNP Paribas reaffirms that institutional adoption of Bitcoin ETFs is going to soar.

In addition, it’s worth noting that City Holding Co., a Royal Bank of Canada subsidiary with $6 billion AUM, invested in the Grayscale Bitcoin Trust (GBTC) in April. According to a 13F filing, dated April 11, 2024, the subsidiary obtained 100 units of the Grayscale Bitcoin ETF.

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Spot Bitcoin ETFs Record A Massive $563 Million Outflow

Following the recent FOMC meeting chaired by Jerome Powell, where interest rates remained unchanged, U.S. Spot Bitcoin ETFs experienced a significant surge in outflows exceeding $560 million on May 1. Moreover, the announcement contributed to a further 5% drop in the Bitcoin price, which dropped below $57,500.

According to data provided by Farside investors, Wednesday saw a notable net outflow of $563.7 million from Spot Bitcoin ETFs. Remarkably, BlackRock’s IBIT ETF witnessed its first outflow since its inception, totaling $37 million.

In addition, Fidelity’s FBTC led the outflow charge with a staggering $191 million, surpassing Grayscale’s GBTC, which recorded $167 million in outflows. For the first time, all Spot Bitcoin ETFs in the United States reported net outflows on the same day, highlighting the intensified selling pressure within the market.

Also Read: U.S. Bitcoin ETF Outflows Jump Past $560 Million, More Pain Ahead?