- Yong Rong Asset Management, a Hong Kong-based investment firm, has purchased $38 million worth of shares in BlackRock’s iShares Bitcoin Trust (IBIT), according to Eric Balchunas, Bloomberg’s senior ETF analyst.
- This acquisition represents 12% of the fund’s total holdings, despite the recent launch of cryptocurrency ETFs in Hong Kong.
- BNP Paribas, Europe’s largest banking group, has also disclosed holding a small number of IBIT shares, indicating a growing trend of mainstream adoption.
Yong Rong Asset Management acquires $38 million worth of shares in BlackRock’s iShares Bitcoin Trust (IBIT), marking a significant move towards mainstream adoption of cryptocurrency.
Yong Rong Asset Management’s Significant Investment in Bitcoin ETF
Yong Rong Asset Management’s acquisition of $38 million worth of shares in BlackRock’s iShares Bitcoin Trust (IBIT) represents a significant investment in the cryptocurrency market. Despite the recent launch of cryptocurrency ETFs in Hong Kong, the firm opted for a U.S.-based Bitcoin ETF, likely due to the allure of low fees and high volume.
BNP Paribas and the Trend of Mainstream Adoption
BNP Paribas, the largest banking group in Europe, has also recently disclosed that it holds a small number of IBIT shares. This move is seen as another sign of mainstream adoption of cryptocurrency. As reported by CoinOtag, BlackRock’s IBIT ended its inflow streak on April 25 at 73 days. Amid the recent Bitcoin price crash, the record-breaking ETF recorded its first outflows on May 2. Despite this, BlackRock remains highly optimistic about the future of Bitcoin ETFs.
BlackRock’s Optimism Despite Recent Bitcoin ETF Performance
Despite the poor performance of Bitcoin ETFs in recent weeks, BlackRock remains highly optimistic. Robert Mitchnick, the financial giant’s head of digital assets, predicted that IBIT could see a flood of investment from institutional investors, including sovereign wealth funds. These institutions are currently in the middle of performing their due diligence. Institutional investors have been engaging with BlackRock regarding Bitcoin for several years.
Conclusion
The significant investment by Yong Rong Asset Management and BNP Paribas in BlackRock’s iShares Bitcoin Trust (IBIT) indicates a growing trend of mainstream adoption of cryptocurrency. Despite recent market fluctuations, financial giants like BlackRock remain optimistic about the future of Bitcoin ETFs, expecting a surge of investment from institutional investors in the near future.
