BlackRock and Grayscale Bitcoin Trust ETFs Attract Investment from City State Bank

UTC by Mayowa Adebajo · 3 min read
BlackRock and Grayscale Bitcoin Trust ETFs Attract Investment from City State Bank
Photo: Depositphotos

City State Bank’s 13F filing dated July 8, 2024, shows that the bank acquired 33 units of the BlackRock iShares Bitcoin Trust (IBIT).

The Bitcoin (BTC) market is seeing massive institutional interest and adoption, and Iowa-based investment manager City State Bank might just be the latest to hop on the trend. This follows after the bank shared that it has exposure to BTC through BlackRock and Grayscale’s exchange-traded funds (ETFs). City State Bank made the announcement via a recent regulatory filing, reflecting a broader trend within traditional finance (TradFi). This move is yet another proof of the extent to which Bitcoin has gained recognition by institutions as a legitimate asset class.

City State Bank Invest in BlackRock and Grayscale’s ETF

City State Bank’s 13F filing dated July 8, 2024, shows that the bank acquired 33 units of the BlackRock iShares Bitcoin Trust (IBIT). That is, in the second quarter, Q2 2024. This investment marks a big statement by the bank as it announces its arrival on the crypto market.

In addition to its new holdings in BlackRock’s IBIT, City State Bank has made no changes to its investment in the Grayscale Bitcoin Trust (GBTC). In the first quarter of the year, the bank acquired 50 units of GBTC. However, its decision to keep its GBTC holding at status quo means that the confidence levels of the bank, as it pertains to Bitcoin’s long-term potential, remain sky-high.

Notably, the bank’s strategic move aligns with the increasing acceptance of Bitcoin ETFs as a convenient and secure way to gain exposure to Bitcoin. These ETFs eliminate the complexities of direct crypto ownership, a feature that has made them an attractive option for institutional investors.

Taking a Cue from the Bank of New Hampshire

City State Bank’s news follows last week’s revelation from Bank of New Hampshire (BNH) regarding a similar investment in Bitcoin ETFs. BNH’s 13F filing dated July 1, 2024, showed a $9,389 investment in BlackRock’s IBIT ETF, being its first entry into the crypto space. While the amount might seem a little small, the investment saw BNH acquire 275 units of IBIT, which was a huge step towards tapping the full potential of cryptocurrencies.

Besides, there is another twist with BNH. The bank is reportedly tied with another major financial player, Toronto Dominion (TD). According to a Q1 filing, however, TD itself has Bitcoin ETF exposure. So, it appears that there might be a broader strategy within the TD group towards digital assets.

In a sense, the timing of these disclosures is also noteworthy. It comes at a time when round 2 for spot Bitcoin ETF filings are set to begin. In consideration of this, it might be safe to say that many more institutional adoption will be seen over the coming weeks.

Now, more than ever, Bitcoin ETFs look poised to play a major role in bridging the gap between TradFi and the crypto market. The actualization of this ambition, however, rests on the shoulders of prominent asset managers like BlackRock.

Funds & ETFs, Market News, News
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