Binance France President: US Spot Bitcoin ETF is the first tool that allows institutions to easily invest in Bitcoin

David Prinçay, president of Binance France, said that the US spot Bitcoin ETFs are the first tools that allow institutions to easily invest in Bitcoin. He noted: “Before ETFs, institutions had excuses saying: ‘We want to expose our retail investors to Bitcoin, but we don’t know how to choose the right product, and there is not enough trust, etc.’ The advent of ETFs gives institutions a tool to integrate these types of products into traditional products.” According to Prinçay, before the ETF was approved, large financial institutions in Europe could not invest in Bitcoin, but now this has changed: previously, banks in France could not invest in Bitcoin; while BNP Paribas invested in the BlackRock spot Bitcoin ETF in the first quarter of 2024. Although the initial investment was only $41,684, which is less than the value of one Bitcoin, Prinçay described the investment as mainly “symbolic.” Thanks to the launch of spot Bitcoin ETFs, Bitcoin is increasingly being seen as a financial asset for retirement, even by mainstream investors. “It used to be that only early adopters thought that Bitcoin would be their retirement vehicle. Now, everyone is thinking about putting 1%, 2%, or maybe 5% of their 401(k) into Bitcoin,” Prinçay explained. Some large financial institutions, such as Fidelity, allow investors to invest directly in Bitcoin ETFs through their 401(k) retirement plans. In addition, Prinçay added that such investments bring long-term capital, which may help reduce volatility: “A 401(k) is not a traditional transaction like buying and selling stocks every day. It is not a daily trading activity. It is a long-term activity… In terms of security, Bitcoin may become one of the preferred assets in a 401(k).” Despite the promise of introducing more baby boomers to the Bitcoin market, more than 85% of the underlying Bitcoin is held by retail investors, and only 10% is held by hedge funds. Prinçay explained that these retail investors are not just crypto retail investors who previously held Bitcoin in cold wallets, but also retail investors in traditional finance. According to Dune data, the US spot Bitcoin ETF has absorbed 4.29% of Bitcoin's supply since its launch. (Cointelegraph)