Highlights
- American 8th largest US bank PNC has declared exposure to Bitcoin ETF
- The bank has bought $67 million in the ETF product
- BlackRock upped its stake in IBIT amid growing adoption
The spot Bitcoin Exchange-Traded Fund (ETF) market just witnessed PNC, the 8th largest bank in the United States, declare its exposure to BTC. As revealed via its 13F filing with the Securities and Exchange Commission (SEC), PNC, with $325 billion in Assets Under Management (AUM), said it has exposure worth $67 million.
Bitcoin ETF Adoption Among Banks Growing
According to former Sequoia Capital Analyst Julian Fahrer, PNC increased its stake in BTC ETFs over one year. The financial giant upped its stake from $10 million to $67 million. Per the 13F filing, it invested the funds into Bitwise Bitcoin ETF (BITB)
Beyond PNC, top banks in the United States are gaining increasing backing for Bitcoin ETF products. Previous reports hinted that Wells Fargo, Morgan Stanley, and BNP Paribas are heavily invested in these products.
Amid the 13F filings, BlackRock, the issuer of iShares ETF Trust (IBIT), also increased its stake in the fund. As Fahrer noted, the BlackRock IBIT allocation has jumped from $92 million in November 2024 to $140 million today.
Many analysts believe these top corporate buyers are strategic in their ETF bets. The fund marked 1st anniversary with huge milestones, serving as a pointer to its maturity.
BTC ETF and Quest for In-Kind Redemption
Data from Farside Investors shows that Bitcoin ETF products have amassed $40.5 billion in inflows since they launched. With records that prove faster growth than other comparative ETFs like gold, issuers are now eyeing key changes.
BlackRock has moved to demand in-kind redemption for IBIT, a request lodged with the US SEC earlier this month. The current cash creates model sees investors receive proceeds from their BTC ETF funds through the US Dollar. With in-kind redemption, direct BTC payouts will be possible.
Other asset managers like Fidelity Investments are now joining this trend, showcasing the next phase of growth for the ETF.
Competing for Limited Supply
As many asset managers have hinted recently, the BTC world may see intense bids for the coin’s limited supply. With BTC-featured crypto mining producing an average of 450 coins daily, the demand from ETF buyers far outweighs the supply.
Firms like Strategy could compound this competition. Following its recent rebrand to Strategy from MicroStrategy, the Michael Saylor-led firm has revealed it remains focused on Bitcoin. Thus far, the firm has acquired 471,107 BTC, more than 2.5% of the coin’s circulating supply. It has also inspired other firms to adopt Bitcoin as a treasury reserve asset, gaining ground worldwide.
With state and federal governments making crucial Bitcoin pivots, the demand for Bitcoin extends beyond ETF, with a huge price upside.
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