Barclays Joins Bitcoin ETF Party, Buys $131M in IBIT

Barclays Bank, a prominent UK-based financial institution, has recently disclosed a significant position in the iShares Bitcoin Trust (IBIT) through its latest 13F filing with the U.S. Securities and Exchange Commission (SEC). The bank now holds 2,473,064 shares of IBIT, valued at $131 million as of December 31, 2024.

The purchase took place during the fourth quarter of 2024, spanning October to December, and coincided with the post-election surge in the Bitcoin price. As of now, Bitcoin is trading at a price of $97,030.17, up 0.8% over the past day, according to CoinGecko data.

Barclays' move follows a trend in institutional adoption of crypto-related products, with banking giants such as Goldman Sachs and JP Morgan also increasing their Bitcoin ETF holdings in recent months. As Bitcoin surged to a record high of $109,000 just before the U.S. presidential inauguration, these institutions seized the opportunity to capitalize on the crypto's rise without directly owning Bitcoin itself.

The approval of Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) has made it easier for these institutions to get exposure to Bitcoin while sidestepping some of the volatility and regulatory concerns surrounding direct crypto ownership. For instance, Goldman Sachs reported a 121% jump in its Bitcoin ETF holdings, bringing its total stake to $1.57 billion. Similarly, JPMorgan recently reported an increase in its BTC fund exposure, which now totals $964,322.

In January 2025, U.S. Bitcoin ETFs saw a massive $5 billion in inflows, a trend expected to continue in 2025 with forecasts of over $50 billion in inflows, according to Farside Investors data. BlackRock's IBIT saw the largest net inflows during January, pulling in $3.2 billion, followed by Fidelity's Wise Origin Bitcoin Fund (FBTC) with $1.3 billion.

Analysts are predicting more gains for Bitcoin in the coming years, with projections suggesting it could reach as high as $200,000 by late 2025.