- BNP Paribas, the second-largest bank in the European Union, has purchased BlackRock shares worth $41,684 in the first quarter, indicating a possible shift towards Bitcoin.
- The bank acquired 1,030 iShares Bitcoin Trust (IBIT) at an average of $40.47 per share, a small but significant move in the mainstream embrace of Bitcoin.
- Other mainstream banks are expected to follow suit, as the demand for Bitcoin among institutional investment firms grows.
BNP Paribas, a banking giant in the EU, has made a significant move towards Bitcoin, purchasing BlackRock shares and signaling a potential shift in mainstream financial institutions’ approach to the cryptocurrency.
BNP Paribas’ Entry into Bitcoin
According to recent filings, BNP Paribas, the second-largest bank in the EU, has purchased BlackRock shares worth $41,684 in the first quarter. The bank acquired 1,030 iShares Bitcoin Trust (IBIT) at an average of $40.47 per share. While this investment is small compared to the bank’s $600 billion in Assets Under Management (AUM), it marks a significant shift in the mainstream embrace of Bitcoin.
Growing Demand for Bitcoin Among Institutional Investment Firms
The demand for Bitcoin among mainstream institutional investment firms is growing. This trend is evidenced by Morgan Stanley’s recent increased interest in the asset class. The approval of the spot Bitcoin ETF has opened an avenue for every compliant firm to gain access to the new investment product. Besides BNP Paribas, it is projected that more mainstream banks will soon embrace this nascent asset class.
Impact on Bitcoin Price
While BNP Paribas’ core intentions for the digital currency remain unclear, there is a generally bullish sentiment in the market. The price of Bitcoin is in recovery mode, up by 2.07% in the past 24 hours to $58,339.26. With bullish investor sentiment returning on the BNP Paribas accumulation, Bitcoin is now looking to reclaim the $60,000 resistance level soon.
Conclusion
BNP Paribas’ move into Bitcoin, albeit small, signals a potential shift in mainstream financial institutions’ approach to the cryptocurrency. As the demand for Bitcoin grows among institutional investment firms, it is expected that more banks will follow suit. This development could have a significant impact on the price of Bitcoin, which is currently in recovery mode.
