BlackRock Launches First Bitcoin ETP In Europe, Charges 0.25% Fee

BlackRock, the world's largest asset manager, has launched its first Bitcoin exchange-traded product (ETP) in Europe, marking a significant step in bridging traditional finance with the cryptocurrency market. The new product, iShares Bitcoin ETP, will trade under the ticker IB1T on Xetra and Euronext Paris and as BTCN on Euronext Amsterdam, offering European clients exposure to Bitcoin without the complexities of directly holding the cryptocurrency. This move is part of BlackRock's strategy to tap into the growing demand for cryptocurrency investments in new markets.

The introduction of the iShares Bitcoin ETP in Europe is a notable development for several reasons. Firstly, it underscores BlackRock's commitment to expanding its offerings in the digital asset space. The firm has been increasingly exploring opportunities in cryptocurrencies, recognizing the potential for long-term growth and diversification benefits. Secondly, the launch of this ETP provides European investors with a regulated and accessible way to gain exposure to Bitcoin, which has traditionally been a challenging asset class to invest in due to its volatility and regulatory uncertainties.

The ETP will be listed on European exchanges, making it available to a broad range of institutional and retail investors. This move is expected to attract more traditional investors who are cautious about directly investing in cryptocurrencies but are interested in the potential returns. By offering a Bitcoin ETP, BlackRock is providing a familiar investment vehicle that aligns with the regulatory frameworks and risk management practices of traditional finance.

The launch of the iShares Bitcoin ETP also highlights the evolving landscape of digital assets. As more institutional players enter the cryptocurrency market, the demand for regulated and transparent investment products is likely to increase. BlackRock's entry into this space is a testament to the growing acceptance of cryptocurrencies as a legitimate asset class, and it sets a precedent for other asset managers to follow suit.

Manuela Sperandeo, BlackRock’s head of Europe & Middle East iShares Product, says the product reflects “what really could be seen as a tipping point in the industry — the combination of established demand from retail investors with more professionals now really getting into the fold.” The launch follows the success of BlackRock’s U.S.-listed iShares Bitcoin Trust (IBIT), which amassed billions in assets and became the fastest-growing ETF in market history, allocating $48 billion in 2024.

While IB1T will initially have a fee waiver, it will eventually charge 0.25%, the same as CoinShares‘ physical Bitcoin product, Europe’s largest crypto ETP. The product is designed for both institutional and informed retail investors and will be issued through a special-purpose vehicle based in Switzerland. Coinbase will remain as its custodian for the physical Bitcoin backing the ETP.

In summary, BlackRock's rollout of the iShares Bitcoin ETP for European clients is a strategic move that reflects the firm's commitment to innovation and its recognition of the growing demand for cryptocurrency investments. This development is expected to attract more traditional investors to the digital asset space, further bridging the gap between traditional finance and cryptocurrencies.