BlackRock Introduces Bitcoin ETP In Europe

Asset management behemoth BlackRock has unveiled its maiden bitcoin offering in Europe, marking a significant foray into the European bitcoin market. The newly launched product is a physically backed bitcoin exchange-traded product (ETP) known as the iShares Bitcoin ETP. Trading of this ETP commenced on Tuesday on Germany’s Xetra exchange and the Euronext exchanges in Paris and Amsterdam. Investors can access the ETP under the tickers IB1T on Xetra and Euronext Paris, and as BTCN on Euronext Amsterdam.

Last year, BlackRock introduced a bitcoin ETF in the United States, the iShares Bitcoin Trust (IBIT), which has amassed an impressive $50 billion in assets, making it the world’s largest spot bitcoin ETF. BlackRock’s CEO, Larry Fink, had previously expressed reservations about bitcoin. However, he appears to have had a change of heart due to increasing client demand. By launching a bitcoin ETP in Europe, BlackRock is providing institutional investors in the region with a secure and regulated means to gain exposure to bitcoin’s price movements.

While Europe has been home to various crypto ETPs for several years, they have struggled to match the assets held by U.S. bitcoin ETFs. The management fee for BlackRock’s bitcoin ETP stands at 0.25%, with a temporary fee waiver in place until the end of 2025, bringing the fee down to 0.15%. The ETP relies on Coinbase for custody services. With over $10 trillion in assets under its management, BlackRock’s entry into the European bitcoin market carries significant scale and distribution capabilities. This move underscores the gradual acceptance of bitcoin as a legitimate institutional asset class by mainstream financial entities.

In conclusion, BlackRock’s launch of a bitcoin ETP in Europe demonstrates a strategic move to tap into the growing interest in cryptocurrencies among institutional investors. This development showcases the evolution of bitcoin from a fringe asset to a mainstream investment option embraced by major players in the financial industry.