BlackRock, the world’s largest asset manager, is launching its first Bitcoin ETP (exchange-traded product) in Europe, expanding its presence in the crypto investment space.
This move follows the success of its US-listed spot Bitcoin ETF, the iShares Bitcoin Trust (IBIT), which has accumulated $50.6 billion in assets under management (AUM).
BlackRock to List Bitcoin ETP in Europe
The new iShares Bitcoin ETP will be available for trading on Xetra and Euronext Paris under the ticker IB1T and on Euronext Amsterdam as BTCN.
The expansion into Europe marks BlackRock’s first crypto-backed ETP offering outside North America. This suggests growing institutional interest in digital assets.
To encourage early adoption, BlackRock is offering a temporary fee waiver, reducing the expense ratio of the ETP to 0.15% until the end of the year. This makes the product one of the most cost-effective Bitcoin ETPs in the European market. It could attract retail and institutional investors looking for exposure to digital assets at a competitive price.
Europe has pioneered crypto ETPs, with over 160 digital asset-tracking products available. However, its overall market size remains relatively small compared to the US.
Bloomberg ETF analyst Eric Balchunas pointed out that US spot Bitcoin ETFs dominate the global market. Specifically, the US holds approximately 91% of total assets despite being introduced only a year ago.
“Europe barely on leaderboard of spot bitcoin ETFs by size. US spot ETFs only year old and have 91% share of world,” Balchunas said in a February post.
Balchunas also noted that Europe has struggled to compete with the US regarding liquidity and cost efficiency. He speculated that BlackRock’s entry into the European market could provide a significant boost. Specifically, the asset manager could replicate the cost-effectiveness and trading volume seen in the US.
“If BlackRock brings even some of the US Terrordome over there, it should see success, although Europeans are generally less into ‘hot sauce’ than US and certain Asian investors,” he added.
Notwithstanding, BlackRock’s Bitcoin ETP in Europe is a game-changer for institutional adoption. As access broadens, it could increase BTC demand. Nevertheless, some express skepticism as Bitcoin’s average on-chain transaction value has dropped significantly since 2017.
“BTC’s demand is massively dominated by centralized derivatives like future contracts and ETFs/ETPs, with BlackRock being a key player. Onchain transaction volume is at significantly low levels, while the speculative, derivative-based volume keeps growing. This is not good for BTC, and it’s so sad that most BTC supporters can’t see that,” wrote Vini Barbosa.
This indicates low organic demand, while centralized derivatives like ETFs and futures dominate trading volume.
Despite the news, however, the impact on Bitcoin’s price remains muted. BTC was down by 0.55% in the last 24 hours. As of this writing, Bitcoin was trading for $86,601.
Notably, the role of Europe’s sweeping Markets in Crypto Assets (MiCA) regulations cannot be ignored. This regulation delivered a clear and structured framework under which firms can launch new products.
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