BlackRock Expands its Bitcoin Dominance by Launching a Spot Bitcoin ETP in Europe

In a significant move that could signal a shift in the world of cryptocurrency investment, BlackRock, the world's largest asset manager, has launched a new product in Europe that mirrors its successful Bitcoin exchange-traded fund (ETF) introduced in the U.S. last year.

BlackRock, the world’s largest asset manager, has launched its iShares Bitcoin ETP (XS2940466316) on European exchanges.

The product, which is being listed on Euronext in Paris and Amsterdam, as well as Xetra, is a direct bitcoin product. This means the ETP will hold the cryptocurrency as its underlying asset.

Investors who buy into the ETP will be gaining exposure to bitcoin’s price movements. Each share of the Bitcoin ETP corresponds to a specific amount of bitcoin, and the ETP’s performance will mirror that of the digital asset.

This launch follows the huge success of BlackRock’s Bitcoin ETF (CRYPTO: BITCOIN) in the U.S., which debuted on the Nasdaq (NDAQ:NDAQ) last year.

Within 12 months, the fund has already amassed over $52 billion in assets under management, with nearly $38 billion in net inflows. To put that figure into context, it’s the fastest any index product in U.S. history has reached such an amount.

Also, to highlight the speed of the fund’s success, it quickly outpaced even the long-established SPDR Gold Trust (NYSE: GLD), which was launched in 2004, to become the fastest-funded ETF.

Despite being a much newer product, BlockRock’s Bitcoin fund has attracted far more investment, showcasing the huge demand for crypto exposure from both individual and institutional investors.

This level of interest and rapid growth in assets has made BlackRock’s Bitcoin ETF one of the most successful launches in the history of index funds.

What’s more, the low fees charged by BlackRock’s fund have helped it to siphon market share from traditional products like the Grayscale Bitcoin Trust ETF (NYSE: GBTC), which previously traded over-the-counter in New York.

But BlackRock’s ability to attract both novice investors and seasoned professionals speaks volumes about the huge demand for easily-accessible bitcoin products.

Could other European banks follow suit?

With BlackRock now making a move into the European market with its iShares Bitcoin ETP, could we see other major banks and financial institutions launching their own cryptocurrency products in the coming months and years?

Only time will tell, but the success of BlackRock’s Bitcoin ETF in the U.S., which is already one of the most popular ETFs on the market, suggests that there is a strong appetite for cryptocurrency products from traditional investors.

Europe is also rapidly expanding its regulatory framework for cryptocurrencies, which could open the door for even greater innovation in the crypto-finance space.

If BlackRock’s Bitcoin ETP becomes as successful in Europe as its U.S. counterpart, it’s likely that we will see other major financial institutions taking notice and rolling out their own offerings in an effort to capitalize on the booming demand for cryptocurrencies.

Indeed, some European banks may already be assessing how they can integrate cryptocurrency products into their portfolios.

Earlier this year, Deutsche Bank (ETR:DEUT) executives revealed that the investment bank is considering how it can offer crypto services to its clients.