Blackrock and Bitcoin logo on dark background with shiny details. 3D render. MUENSTER, GERMANY - June 17, 2023
- BlackRock has launched a Bitcoin exchange-traded product (ETP) in Europe, marking its first expansion of crypto investment offerings outside the U.S.
- With competitive pricing and a temporary fee discount, the move positions BlackRock to challenge existing European crypto ETP providers and drive greater institutional adoption.
BlackRock, the world’s largest asset manager, has officially entered the European cryptocurrency market by launching a Bitcoin exchange-traded product (ETP). This move follows the massive success of its spot Bitcoin ETF, IBIT, in the United States and signals BlackRock’s commitment to expanding its digital asset offerings globally.
BlackRock’s Bitcoin ETP Lands in Europe
The newly launched Bitcoin ETP, listed under the ticker IB1T on Germany’s Xetra and Euronext Paris, will also be available on Euronext Amsterdam under the ticker BTCN. This marks BlackRock’s first foray into the European crypto ETP sector, an area that has been significantly smaller than its U.S. counterpart.
Despite the presence of cryptocurrency-linked ETPs in Europe for several years, the region’s market is considerably smaller. European crypto ETPs collectively manage around $13.6 billion in assets, compared to the staggering $105 billion under management in the U.S.
Competitive Edge and Market Impact
BlackRock is making a strong entrance by offering a temporary 10% fee discount, with an expense ratio of just 0.15% until the end of 2025. This undercuts the current largest crypto ETP provider in Europe, CoinShares International Ltd., which manages $1.3 billion in Bitcoin and charges a 0.25% fee.
The move comes at a time when Bitcoin-related investment products are seeing substantial demand. In the U.S., BlackRock’s IBIT has grown to become the largest spot Bitcoin ETF, holding nearly 500,000 BTC worth approximately $48 billion. Last week alone, U.S. spot Bitcoin ETFs saw nearly $800 million in net inflows, with BlackRock leading the charge by acquiring over 6,300 BTC.
A New Chapter for Bitcoin Investments in Europe
BlackRock’s entry into the European Bitcoin ETP market could catalyze greater adoption and competition. While European investors have had access to crypto ETPs for years, BlackRock’s reputation, scale, and competitive pricing may attract significant institutional and retail interest.
With its aggressive expansion strategy and proven success in the U.S. market, BlackRock’s move could reshape the European crypto investment landscape. As digital assets continue to gain traction worldwide, this launch marks a significant step in bridging the gap between traditional finance and the rapidly evolving crypto space.
