BlackRock Launches Bitcoin ETP in Europe with 0.15% Fee

BlackRock, the world’s largest asset manager, has expanded its presence in the crypto investment space by launching its first Bitcoin ETP (exchange-traded product) in Europe. This move follows the success of its US-listed spot Bitcoin ETF, the iShares Bitcoin Trust, which has accumulated significant assets under management.

The new iShares Bitcoin ETP will be available for trading on Xetra and Euronext Paris under the ticker IB1T and on Euronext Amsterdam as BTCN. This expansion into Europe marks BlackRock’s first crypto-backed ETP offering outside North America, indicating growing institutional interest in digital assets.

To encourage early adoption, BlackRock is offering a temporary fee waiver, reducing the expense ratio of the ETP to 0.15% until the end of the year. This makes the product one of the most cost-effective Bitcoin ETPs in the European market, potentially attracting both retail and institutional investors seeking exposure to digital assets at a competitive price.

The launch of the iShares Bitcoin ETP in Europe is significant as it reflects a tipping point in the industry. This tipping point is characterized by established demand from retail investors and an increasing number of professionals entering the market. The US-listed iShares Bitcoin Trust, which debuted in January last year, quickly amassed billions of dollars in assets and recorded the best launch for any exchange-traded fund (ETF) in market history. While crypto-linked ETPs have been trading on European bourses for years, the market’s size is significantly smaller compared to that of the US.

Crypto exchange Coinbase Global Inc will be responsible for custodying the physical bitcoin backing the product. The iShares Bitcoin ETP is open to both institutional and informed retail investors and will be issued by a special purpose vehicle domiciled in Switzerland. This launch underscores BlackRock’s strategic expansion into the European market, leveraging its established reputation and expertise to offer investors a cost-effective and reliable way to gain exposure to Bitcoin. The temporary fee waiver is a strategic move to attract investors and establish a competitive edge in the European ETP market.