BlackRock to Launch European Bitcoin ETP, Targeting Institutional Investors

BlackRock, the world's largest asset manager, plans to introduce its first Bitcoin ETP in Europe, according to Bloomberg.

World’s largest asset manager BlackRock is reportedly preparing to launch its first Bitcoin ETP in Europe, according to Bloomberg. The ETP will be supported by MiCA regulations in Europe.

This move highlights the growing institutional interest in digital assets and the European market’s enthusiasm for crypto investment products.

BlackRock’s European Bitcoin ETP: Coming Soon?

With over $10 trillion in assets, BlackRock might debut the Switzerland-based fund as early as this month. While there hasn’t been any official confirmation from the AUM, market observers point to the success of its U.S.-listed iShares Bitcoin ETF (IBIT) as a motivating factor.

Launched in April 2022, IBIT amassed nearly $60 billion in assets within a year, highlighting the strong demand for institutional-grade Bitcoin exposure.

Now, BlackRock is set to bring a European version of the product, pending regulatory approval. The fund will be listed on the SIX Swiss Exchange and will begin trading in the coming weeks.

This development marks a significant entry for BlackRock in the European crypto market, which has already seen asset managers like Kraken and Bitstamp launching crypto-backed securities across the region.

Europe has long embraced crypto investment products, launching its first regulated Bitcoin-backed ETP in 2015. Since then, the market has expanded to over 100 products, covering nearly 40 different underlying crypto assets.

BlackRock’s entry could spark further competition, especially considering the fee wars seen in the U.S. with the launch of several Bitcoin ETFs.

However, the success of BlackRock’s new ETP will also depend on its fee structure. European crypto ETP fees can go up to 2.5%, while BlackRock’s U.S. ETF charges just 25 basis points.

“The fee will be a big variable in performance,” said Eric Balchunas, a Bloomberg analyst covering ETFs.

Institutions Keep Showing Interest in Crypto, BTC Dominance

While U.S.-based Bitcoin ETFs dominate the global market with a 91% share, Europe provides a promising landscape for crypto-linked products, with over 160 offerings worth over $17 billion.

Bitcoin’s prominence against fiat currencies, including the euro, continues to grow in the region, with cumulative trade volumes topping €50 billion in 2024 alone.

Meanwhile, BlackRock, a key player in Bitcoin ETF offerings, is now preparing to integrate cryptocurrency into sovereign wealth fund holdings.

BlackRock and Sovereign Wealth Funds

Earlier this year, BlackRock CEO Larry Fink confirmed that his firm is working with sovereign wealth funds to allocate funds to Bitcoin.

This engagement follows concerns over inflation and the devaluation of fiat currencies, which prompted some SWFs to consider alternative investments like crypto.

According to Fink, these investments might propel Bitcoin’s price as high as $700,000.

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