BlackRock Launches Bitcoin ETP In Europe
Asset management giant BlackRock has made a significant move by launching its first bitcoin product in Europe, a physically backed bitcoin exchange-traded product (ETP). The iShares Bitcoin ETP commenced trading on Tuesday on Germany’s Xetra exchange and Euronext exchanges in Paris and Amsterdam. This ETP will be traded under the tickers IB1T on Xetra and Euronext Paris, and as BTCN on Euronext Amsterdam.
This latest product release follows BlackRock’s debut of a bitcoin ETF in the U.S. last year. The U.S. ETF, iShares Bitcoin Trust (IBIT), has garnered over $50 billion in assets, making it the largest spot bitcoin ETF globally. Despite BlackRock CEO Larry Fink’s initial skepticism towards bitcoin, the company seems to have adjusted its stance due to increasing client demand.
By introducing a European bitcoin ETP, BlackRock is providing institutional investors in the region with exposure to bitcoin’s price performance within a familiar and regulated framework. While crypto ETPs have been available in Europe for some time, they have not reached the same level of assets as U.S. bitcoin ETFs.
BlackRock’s bitcoin ETP comes with a management fee of 0.25%, which is reduced to 0.15% thanks to a temporary fee waiver until the end of 2025. The ETP utilizes Coinbase for custody, ensuring a secure storage solution for investors’ bitcoin holdings.
With over $10 trillion in assets under management, BlackRock holds a significant amount of scale and distribution power in the financial industry. This move signifies a growing acceptance of bitcoin as an emerging institutional asset class among mainstream investors.
In conclusion, BlackRock’s launch of a bitcoin ETP in Europe marks a significant step towards broader adoption of cryptocurrencies within traditional financial markets. Investors now have access to bitcoin’s potential upside within a regulated and familiar investment vehicle, highlighting the industry’s ongoing evolution towards digital assets.
