BlackRock's head of digital assets, Robert Mitchnick, revealed that his company is in talks with several financial institutions that are considering entering the Bitcoin market through ETFs.
According to Mitchnick's statements during an educational panel of the company, major financial institutions in the traditional industry are considering trading shares of its Bitcoin spot fund.
Mitchnick, who said BlackRock has been playing a key role in educating financial institutions about the impact of cryptocurrencies, highlighted the boost that spot Bitcoin ETFs have given to institutional demand for the digital asset. He said that several sovereign wealth funds, pension funds, endowment funds, insurance companies and family offices are preparing to enter the Bitcoin market and these institutions could begin trading their cryptocurrency spot ETF in the coming months.
Another boom is coming for Bitcoin ETFs
During the educational panel, Mitchnick hinted that investors should not be concerned about the current market cooling. While BlackRock, which operates one of the largest Bitcoin spot ETFs, recorded its first day of outflows after achieving a streak of 71 consecutive days of inflows into the fund, Mitchnick highlighted that a new group of investors may be preparing to enter the crypto market, using spot exchange-traded funds as an entry point.
According to Mitchnick, talks between BlackRock and financial institutions on cryptocurrencies have been reviving and intensifying, so it is likely to see a New wave of allocations in Bitcoin ETFs in the coming months
BlackRock's head of digital assets also stressed that the world's largest asset manager has a key role in financial education about cryptocurrencies, as it has been in discussions with different entities for years about the potential and innovation of crypto assets, he said.
Almost $37 million leaves IBIT
BlackRock’s Nasdaq-listed Bitcoin ETF, the iShares Bitcoin Trust (IBIT), saw its first day of outflows on April 30. According to data from the SoSo Value platform, IBIT saw its first net outflow, at $36,93 million, on Tuesday. This after recording five consecutive days with no inflows.
Source: SoSo Value
Overall, demand for Bitcoin ETFs has been cooling, leading to a drop in trading volume and an increase in net withdrawals from these funds, which yesterday reached $563 million, according to the platform's data. However, analysts predict that this stagnation is temporary and that the market could experience new levels of demand in the short and medium term.
Since their approval in the United States on January 10, Bitcoin ETFs have accumulated more than 823.820 BTC. At the time of writing this note, the value of bitcoins under management in these funds exceeds $ 48.700 million dollars.
Hong Kong and the latent demand for Bitcoin
Meanwhile, in Hong Kong, Bitcoin and Ethereum ETFs had a more successful debut than expected, according to Bloomberg analyst Eric Balchunas.
Through his X account, Balchunas published new data on the trading of BTC and ETH exchange-traded funds in the Hong Kong market. Although it was initially reported that on their debut, these cryptocurrency funds moved $12 million on their first day of trading on the Hong Kong Stock Exchange, the actual trading data reveals that $292 million was actually moved through these exchange-traded investment vehicles.
Balchunas noted that these funds were expected to generate a volume of $1.000 billion in their first two years, so the current figures highlight the growing demand for cryptocurrencies.
BNP Paribas buys BlackRock's Bitcoin ETF
Furthermore, the disruption of large financial institutions in the Bitcoin market exposes its growing importance as an investment asset.
Recently, BNP Paribas, the largest bank in Europe and one of the most important globally, revealed an allocation to Bitcoin through spot ETFs. According to the documents filed with the Securities and Exchange Commission (SEC), BNP Paribas has bought stakes in BlackRock's iShares Bitcoin Trust (IBIT).
Continue reading: ETFs, restaking and memecoins, the dominant bullish factors in the crypto industry this 2024
