BlackRock Expands Bitcoin Reach With European ETP Post U.S. ETF Success

BlackRock is set to launch a Bitcoin Exchange-Traded Product (ETP) in Europe, aiming to start trading this month, insiders reveal. This follows the remarkable success of its U.S.-listed Bitcoin exchange-traded fund (ETF), which has amassed nearly $60 billion in assets.

BlackRock, the world's largest asset management firm, is set to expand its cryptocurrency investment products by launching a spot Bitcoin exchange-traded product (ETP) in Europe, according to people familiar with the matter.

The move comes after the remarkable success of BlackRock's U.S.-listed Bitcoin exchange-traded fund (ETF), which has attracted nearly $60 billion in assets. The new fund is expected to be based in Switzerland, with promotional efforts set to begin as early as this month, the sources said.

BlackRock already holds a dominant position in the exchange-traded fund industry, with over $4.4 trillion in ETF-related assets. With this new Bitcoin ETP, BlackRock aims to cater to the rising institutional demand for cryptocurrency investment options in Europe.

Although cryptocurrency ETPs have existed in Europe for several years, this marks BlackRock's first venture into the region's digital asset market.

Larry Fink, BlackRock's Chief Executive Officer, has recently voiced strong support for Bitcoin as a hedge against currency devaluation. Speaking at the World Economic Forum in Davos, Fink highlighted Bitcoin's potential role in institutional portfolios, citing discussions with sovereign wealth funds about allocating 2% to 5% of their holdings to the cryptocurrency. He suggested that widespread institutional adoption could drive Bitcoin's price to levels between $500,000 and $700,000.

Fink further emphasized Bitcoin's appeal as a financial safe haven, particularly for investors in regions facing economic instability or currency devaluation. He explained that Bitcoin provides an internationally recognized financial instrument that can serve as protection against local economic concerns.

Over the past year, there has been a surge in institutional interest in Bitcoin, largely driven by the introduction of multiple spot Bitcoin ETFs in the U.S.

Data from Bloomberg reveals that 12 such funds have collectively attracted approximately $116 billion. BlackRock's iShares Bitcoin Trust (IBIT) has been a standout performer, recording the most successful ETF debut to date. As of February 6, IBIT holds around 585,732 BTC, with a market valuation exceeding $56.5 billion. Its rapid growth has surpassed many traditional ETFs, highlighting the increasing demand for cryptocurrency-based financial products among institutional investors.

Bitcoin's value has reached record highs since the re-election of U.S. President Donald Trump, with expectations of clearer regulatory policies and evolving political conditions driving institutional interest in the cryptocurrency.

While U.S.-based Bitcoin funds have seen significant capital inflows, Europe's cryptocurrency ETP market remains smaller by comparison. Currently, the European market comprises over 160 cryptocurrency-tracking products, including those for Bitcoin and Ethereum, with a combined market value of approximately $17.3 billion.

BlackRock's entry into the European Bitcoin ETP market is expected to further boost the institutional adoption of cryptocurrencies in the region.