BlackRock's Bitcoin ETP Set to Shake Up European Markets

BlackRock, the world's largest asset manager, is set to launch a Bitcoin Exchange-Traded Product (ETP) in Europe, with Switzerland as the likely destination. This move marks the firm's first such product outside North America and underscores its continued confidence in Bitcoin despite recent price volatility.

The firm's existing Bitcoin ETF, the iShares Bitcoin Trust (IBIT), already holds 2.7% of the total BTC supply, demonstrating BlackRock's strong position in the market. Following the success of its IBIT product, which was the most successful ETF launch in history, BlackRock is now expanding its global footprint by strengthening its presence in Europe.

BlackRock executives believe that Bitcoin exposure through an ETP structure is highly attractive to investors. In a recent blog post, BlackRock's Chief Investment Officer for ETFs, Samara Cohen, and Head of Thematic and Active ETFs, Jay Jacobs, emphasized the growing demand for these products.

According to industry sources, BlackRock's European Bitcoin ETP is likely to be based in Switzerland, a country known for its crypto-friendly regulations and blockchain innovation. However, BlackRock will still need to comply with the EU's Markets in Crypto-Assets (MiCA) regulation to expand its product across the European Union.

BlackRock's decision to launch a Bitcoin ETP in Europe signals its continued confidence in the asset, despite recent price fluctuations. While the market has experienced shifts since the rally following Donald Trump's election in November, BlackRock remains committed to expanding its Bitcoin strategy.

In December, IBIT had a higher asset under management (AUM) than over 50 European ETFs, demonstrating its strong performance even amid market uncertainty. Meanwhile, Ethereum ETFs have recently outperformed their underlying assets, raising speculation that the same could happen for BTC.

BlackRock could start promoting this Bitcoin ETP within the next month. Although the firm has not released an official statement or responded to media inquiries, some employees have shared insights off the record. Given BlackRock's vast capital and influence, this new offering has the potential to shake up European markets and deliver significant financial rewards, further strengthening the firm's dominance in the crypto investment sector.