BlackRock Launches Bitcoin ETP in Europe, Expense Ratio at 0.15%

BlackRock, the world's largest asset manager, has launched its iShares Bitcoin ETP (IB1T) in Europe, marking a significant entry into the region's cryptocurrency exchange-traded product (ETP) market. The ETP, which is supported by Bitcoin kept in cold storage, is listed on Deutsche Börse, Euronext Paris, and Euronext Amsterdam. The total expense ratio (TER) for the ETP is initially set at 0.15%, but it will increase to 0.25% by the end of the year when the interim fee waiver expires. This pricing is competitive with other physical Bitcoin ETPs in Europe, which have similar fee structures.

The launch of the iShares Bitcoin ETP reflects BlackRock's success with its U.S. spot Bitcoin ETF, which has $50.7 billion in assets under management (AUM). This makes it roughly three times the size of the second-largest U.S. spot Bitcoin ETF. The ETP's ticker, IB1T, mirrors that of BlackRock's U.S.-listed Bitcoin ETF, the iShares Bitcoin Trust ETF (IBIT).

BlackRock's decision to expand its crypto ETP product to Europe is driven by significant demand. A recent study indicates that 75% of professional investors are interested in a Bitcoin ETP within the next two years. Jane Sloan, EMEA head of global product solutions at BlackRock, emphasized the importance of ETPs in bridging the gap between cryptocurrencies and traditional finance due to their efficiency and simplicity.

The market and regulatory environment for Bitcoin has been strengthened by the U.S. regulator's approval of Bitcoin ETFs in January 2024, which drove Bitcoin to new highs. Additionally, the election of Donald Trump, known for his positive stance on digital assets, provided another boost to the market in November. Bitcoin initially surged beyond the $100,000 mark in December but has since faced pressure and is now trading at $87,000.

BlackRock's iShares Bitcoin ETP is designed to meet the needs of European investors by offering institutional-grade security for Bitcoin holdings. The introduction of the product coincides with a period when the crypto ETP market in Europe is relatively small compared to the United States, with the largest product in Europe valued at just $1.3 billion in AUM. This launch underscores the growing interest and competitiveness in the crypto industry in Europe, as evidenced by the recent debut of Europe’s first leveraged Bitcoin and Ethereum ETCs by HANetf.

BlackRock has partnered with Bank of New York Mellon as the administrator and Coinbase as the custodian for the iShares Bitcoin ETP. This collaboration ensures that the ETP is backed by Bitcoin stored securely in cold storage, providing investors with peace of mind regarding the security of their holdings. The launch of the Bitcoin ETP in Europe marks BlackRock's first exposure to crypto-backed ETPs outside of North America, following the success of its Bitcoin ETF listings in the United States.

BlackRock's iShares Bitcoin Trust, with $50.69 billion in net assets and a cumulative net inflow of $39.8 billion, is the largest among U.S. spot Bitcoin ETFs. The company's strategic move to meet the rising demand for Bitcoin exposure in other countries, leveraging its success in the U.S. market, sets a strong precedent for its European efforts. The U.S. spot Bitcoin ETFs have shown consistent success with positive flows for seven straight days, indicating strong institutional demand and investor interest in Bitcoin exposure.