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BNP Paribas, the second-largest bank in the European Union (EU), has joined the Bitcoin bandwagon. According to recent filings, the French banking giant purchased BlackRock shares worth $41,684 in the first quarter, signaling to market analysts that this may be the start of something profound.
Per the filing, BNP Paribas acquired 1,030 iShares Bitcoin Trust (IBIT) at an average of $40.47 per share. While this investment is small concerning the close to $600 billion the bank has in Assets Under Management (AUM), the move has marked a pivotal shift in the mainstream embrace of Bitcoin.
The disclosure for this cash injection into BlackRock’s spot Bitcoin ETF was teased through a 13F filing. This is an essential regulatory disclosure demanded of entities who traded in the United States at a specific time.
The demand for Bitcoin among mainstream institutional investment firms is growing, as marked by Morgan Stanley upping its ante regarding the asset class recently. The approval of the spot Bitcoin ETF created an avenue that opened access to every compliant firm to gain access to the new investment product. Besides BNP Paribas, there is a general projection that more mainstream banks will soon embrace the nascent asset class.
Impact on Bitcoin price
While it remains unclear what the core intentions of BNP Paribas are, regarding its plans for the digital currency, there is 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.
The long-drawn-out sell-off on the market has sent shivers down to other altcoins, most of which are now recovering in line with the coin. With bullish investor sentiment returning on the BNP Paribas accumulation, Bitcoin is now looking to reclaim the $60,000 resistance level soon.
Bitcoin remains an outlier in the mainstream market, with over 37% in the past three months.
Arman Shirinyan
Alex Dovbnya
