BlackRock Launches Bitcoin ETP (Tracking Bitcoin) in Europe

BlackRock has launched a new Bitcoin exchange-traded product (ETP) in Europe through its iShares fund service. By listing the product on stock exchanges

BlackRock has launched a new Bitcoin exchange-traded product (ETP) in Europe through its iShares fund service.

The world’s largest asset manager, which manages more than $4.4 trillion in ETFs globally, has already sold $58 billion of a US Bitcoin ETF.

Now, the new iShares Bitcoin ETP (IB1T) is listed on the stock exchanges in Germany, France, and the Netherlands.

“The ETP securities aim to provide investment exposure to Bitcoin. Each ETP security corresponds to a specific amount of Bitcoin, which is the cryptoasset entitlement (the ‘Cryptoasset Entitlement’,” the iShares website reads.

Coinbase Custody will be the issuer’s custodian for the ETP’s Bitcoin.

The launch comes as BlackRock expands its products beyond the US.

Last month, BlackRock brought its iShares Bitcoin ETF to the Canadian market, listing the product on Cboe Canada.

The news comes after IBIT was added to BlackRock’s model portfolio offerings.

For financial advisors who use BlackRock’s heavily followed model portfolios, which manage $150 billion, the inclusion of IBIT is huge.

BlackRock will allow a 1% to 2% allocation to IBIT in select target allocation portfolios designed for alternative investments.

Although this initial allocation is small, the sheer scale of BlackRock’s model portfolio reach means that even this small percentage could add up to significant new demand for Bitcoin exposure over time.

Europe is becoming a hub for crypto activity with crypto exchanges OKX, Crypto.com, and Bitpanda recently receiving full Markets in Crypto Assets (MiCA) licenses.

Bitpanda received its license from the German Federal Financial Supervisory Authority (Bafin), while OKX and Crypto.com received theirs in Malta.

Entities operating within the EU’s crypto market must comply with MiCA’s rules which cover transparency, disclosure, and governance. This includes stricter anti-money laundering protocols and requirements for stablecoin issuers to hold sufficient reserves to protect consumers.