BlackRock's Bitcoin ETP Set to Storm Europe

BlackRock to Launch Bitcoin ETP in Europe

BlackRock, the world's largest asset manager, is set to launch a Bitcoin exchange-traded product (ETP) in Europe, according to sources familiar with the matter. The move comes as the firm seeks to expand its cryptocurrency offerings beyond North America.

The new ETP is expected to be domiciled in Switzerland, a country known for its friendly crypto regulations. BlackRock aims to start marketing the product as early as this month, although the company has not made any public statements or responded to press requests.

BlackRock's entry into the European market signals a significant step in the firm's global expansion strategy. The company's iShares Bitcoin Trust (IBIT) has already amassed over $57 billion in net assets since its launch in January 2024, making it the most popular spot Bitcoin ETF in the US.

BlackRock's European Bitcoin ETP aligns with several market trends influencing investor behavior. The growing acceptance of Bitcoin as a legitimate asset class is underscored by the considerable net asset figures achieved by US Bitcoin ETFs, exceeding $100 billion. According to Farside Investors, 2024 witnessed more than $35 billion in net inflows across US Bitcoin ETFs, averaging about $144 million per trading day.

As geopolitical tensions and inflationary pressures mount, established financial institutions like JPMorgan have observed a systemic shift as more investors turn to Bitcoin as a hedge against these risks. Bitcoin has become a more important component of investors' portfolios structurally, as they increasingly seek to hedge against geopolitical risk and inflation.

BlackRock's foray into the European market reflects a broader strategy of international expansion for its cryptocurrency products. Following the successful launch of a Bitcoin ETF on the Cboe in Canada, BlackRock is capitalizing on the surging interest in crypto assets outside the United States. With the new ETP expected to launch in Switzerland, this initiative may lead to increased competition in the European market, where demand for crypto investment vehicles is steadily rising. Moreover, asset managers anticipate further capital inflows into Bitcoin ETF products, with expectations of capturing an additional $48 billion in net inflows by 2025, as projected by analysts at Steno Research.

Institutional investor interest in Bitcoin