Blackrock Plans to Launch a Bitcoin ETP in Europe: Bloomberg

Blackrock Plans to Launch a Bitcoin ETP in Europe: Bloomberg

BlackRock Plans to Launch Bitcoin ETP in Europe, Expanding Global Crypto Offerings

By Camomile Shumba, James Van Straten, Francisco Rodrigues | Edited by Stephen Alpher

• BlackRock (BLK) is preparing to launch its first bitcoin exchange-traded product (ETP) in Europe, with marketing expected to begin as soon as this month, according to Bloomberg.
• The fund will be based in Switzerland, marking BlackRock’s first crypto-linked ETP outside the U.S.
• BlackRock’s iShares Bitcoin ETF (IBIT) in the U.S. has already amassed nearly $60 billion in assets within just over a year of operation.
• The launch could intensify competition in the European crypto ETP market, where expense ratios for similar products have reached as high as 2.5%.

BlackRock Expands Crypto Presence with European Bitcoin ETP

BlackRock, the world’s largest asset management firm with over $10 trillion in assets under management (AUM), is making a bold move into the European crypto market with the planned launch of a bitcoin exchange-traded product (ETP) in Switzerland. According to Bloomberg, the fund could begin marketing as early as this month, expanding the company’s crypto investment offerings beyond the U.S. for the first time.

This marks a significant step for BlackRock, whose iShares Bitcoin ETF (IBIT) in the U.S. has been a major success, accumulating nearly $60 billion in AUM since its launch in early 2024. The introduction of a European bitcoin ETP could enhance the accessibility of institutional crypto investment across the continent, bringing competition to a growing market.

Growing Institutional Interest in Crypto ETPs

BlackRock’s move aligns with a broader trend of investment firms expanding into crypto-backed securities in Europe. Recently, Kraken secured a license to offer derivatives, joining other firms such as Bitstamp and FTX EU in expanding crypto-related investment opportunities for European clients.

The competition among European crypto ETP providers is already heating up, with some firms offering fee waivers and reducing expense ratios, which in some cases have been as high as 2.5%. A similar race to lower costs occurred in the U.S. after spot bitcoin ETFs launched in January 2024.

Uncertainty Around Fees and Market Impact

One of the major questions surrounding BlackRock’s new European bitcoin ETP is its fee structure, which could have a significant impact on its attractiveness to investors.

“We don’t know the fee yet, and that will be a big variable,” said Eric Balchunas, a senior ETF analyst at Bloomberg. He noted that while U.S. ETFs dominate in terms of cost-effectiveness and liquidity, BlackRock’s European expansion signals a long-term commitment to crypto investments.

Currently, U.S.-based bitcoin ETFs control 91% of the global market, highlighting the dominance of American funds in the sector. However, with BlackRock now entering the European market, the competitive landscape for crypto-backed investment products in Europe could soon shift.