BlackRock Launches Bitcoin ETP in Europe, Expense Ratio 0.15%

BlackRock, the world’s largest asset manager, has expanded its crypto investment offerings by launching a Bitcoin exchange-traded product (ETP) in Europe. This move follows the success of its U.S.-listed iShares Bitcoin Trust, which has grown to $48 billion since its debut in January 2024. The new European ETP, named the iShares Bitcoin ETP, will begin trading on Tuesday under the ticker IB1T on Germany’s Xetra exchange and Euronext Paris, and as BTCN on Euronext Amsterdam.

BlackRock is offering an introductory fee waiver of 10 basis points, reducing the product’s total expense ratio to 0.15% through the end of the year. This launch marks BlackRock’s first crypto-linked ETP offering outside North America. Manuela Sperandeo, head of iShares Product for Europe and the Middle East, described the launch as a “tipping point” for the industry, highlighting the growing interest from both retail and institutional investors in digital assets.

While Europe has hosted crypto ETPs for several years, the market remains significantly smaller than the U.S., with a total size of about $13.6 billion. However, BlackRock’s IB1T enters the space competitively. After the fee waiver ends, its expense ratio will match that of CoinShares International’s leading $1.3 billion physical Bitcoin ETP at 0.25%.

The physical Bitcoin backing the ETP will be held in custody by U.S.-based crypto exchange Coinbase, ensuring secure storage of the underlying assets. The product is structured through a special purpose vehicle based in Switzerland and will be available to both institutional investors and qualified retail investors.

This launch underscores BlackRock’s commitment to expanding its crypto offerings globally, leveraging the success of its U.S. Bitcoin ETF. The move is expected to attract more investors to the European market, further boosting the region’s digital asset ecosystem. The competitive pricing and secure custody arrangements are likely to make the iShares Bitcoin ETP an attractive option for investors looking to gain exposure to Bitcoin in a regulated and transparent manner.