BlackRock Brings Bitcoin ETP to 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 a report by Bloomberg. The move comes after the overwhelming success of BlackRock's U.S. spot Bitcoin exchange-traded fund (ETF), iShares Bitcoin Trust (IBIT), which has amassed over $57 billion in net assets since its launch in January 2024. BlackRock's IBIT is currently the most popular spot Bitcoin ETF in the U.S.

BlackRock's European Bitcoin ETP is expected to be domiciled in Switzerland, with the asset manager planning to start marketing the fund as early as this month, Bloomberg reported, citing people familiar with the matter. This would be BlackRock's first Bitcoin ETP outside North America, further expanding the firm's global cryptocurrency offerings.

BlackRock's entry into the European Bitcoin market 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 U.S. Bitcoin ETFs, which exceeded $100 billion in November 2024. According to Farside Investors, U.S. Bitcoin ETFs saw more than $35 billion in aggregate net inflows in 2024, or roughly $144 million in net inflows each 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.

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, which allowed Canadian investors to access BlackRock's flagship U.S. spot Bitcoin fund, the asset manager 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. Asset managers anticipate further capital inflows into Bitcoin ETF products, with expectations of capturing an additional $48 billion worth of net inflows by 2025, according to analysts at Steno Research.

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