[Digital Today reporter Jinju Hong (홍진주)] Banco Santander, Spain's largest bank, disclosed it invested about $4.3 million in BlackRock’s spot bitcoin exchange-traded fund (ETF). It invested indirectly through an ETF instead of holding bitcoin directly, and an assessment says the trend of traditional finance expanding digital asset exposure is continuing.

On July 30 local time, Bitcoin Magazine reported that Santander said in a U.S. Securities and Exchange Commission filing that it holds 129,615 shares of BlackRock’s iShares Bitcoin Trust (IBIT). The holding is worth about $4.3 million.

The investment is notable because it is an indirect investment using a spot bitcoin ETF rather than a method of directly buying or custodying bitcoin. IBIT is designed to let investors take positions in bitcoin price moves without managing private keys or directly custodying digital assets, and it can be traded through a securities account like ordinary stocks.

The market views the disclosure as another case showing traditional financial institutions expanding bitcoin investment. Since spot bitcoin ETFs were approved in the United States, institutional investors have used ETFs as a key investment tool to reduce security and regulatory burdens tied to direct custody.

Santander has also steadily expanded its digital asset business. Openbank, Santander’s digital bank, has provided customers with trading services for cryptocurrencies including bitcoin over the past year, and it is gradually strengthening digital asset-related services and marketing.

IBIT, the investment target, is cited as a leading spot bitcoin ETF that is drawing institutional inflows. According to BlackRock, IBIT’s assets under management are currently about $46.9 billion, and it is assessed as one of the fastest-growing cryptocurrency ETFs since launch.

Competition in the bitcoin ETF market is also intensifying. In addition to BlackRock, major financial firms such as Fidelity and Morgan Stanley are rolling out related products and moving to attract institutional investors. The ability to invest in bitcoin within a regulatory framework is cited as ETFs’ biggest advantage.

The market is also expanding rapidly. According to CoinGlass, total assets under management for U.S. bitcoin ETFs and related funds have surpassed $83.0 billion. Santander’s disclosure is assessed as a case showing that large European banks are also gradually increasing the share of digital asset investment by using spot bitcoin ETFs.