BlackRock plans to launch a Bitcoin exchange-traded product (ETP) in Europe, expanding its cryptocurrency investing products beyond the US. The asset management behemoth, which manages trillions of dollars in assets, intends to establish the new ETP in Switzerland and expects to begin promoting the fund this month.
The decision follows the huge success of BlackRock’s iShares Bitcoin Trust (IBIT), a US-based Bitcoin ETF that has raised billions of dollars in assets since its inception. By bringing a comparable product to Europe, the company hopes to capitalize on the region’s growing desire for regulated cryptocurrency investing choices.
This expansion is consistent with BlackRock’s overall aim to provide investors with diverse access to digital assets. The firm just launched a Bitcoin ETF in Canada, allowing Canadian investors to obtain exposure to Bitcoin via their brokerage accounts. The new European ETP will serve a similar objective, giving investors access to Bitcoin through a regulated and familiar investment structure.
While the European market now offers various crypto-linked investment products, it is still substantially smaller than the US sector in terms of total assets under management. However, as institutional interest in Bitcoin grows and legal clarity evolves, Europe is emerging as a significant battleground for asset managers seeking to build a solid footing in the digital asset industry.
We expect BlackRock’s entry into the European market to intensify competition among existing cryptocurrency ETP providers. Fee structures and liquidity will be critical in deciding the viability of these products, as investors look for cost-effective and efficient ways to acquire access to Bitcoin.
As institutional adoption of Bitcoin grows, BlackRock’s latest action demonstrates a strong belief in the long-term potential of digital assets. By expanding into Europe, the company is putting itself at the forefront of the global crypto investment market, catering to rising investor demand for safe and regulated Bitcoin investment alternatives.
