BlackRock, the world’s largest asset manager overseeing over $10 trillion in assets, is reportedly planning to launch a Bitcoin exchange-traded product (ETP) in Europe, marking a significant expansion of its cryptocurrency offerings. Bloomberg reported this development on Wednesday, suggesting the fund will be based in Switzerland with marketing potentially beginning as early as this month.
This move signifies BlackRock’s first foray into the crypto-linked ETP market outside of the United States. Their U.S.-based iShares Bitcoin ETF (IBIT) has experienced phenomenal success, amassing nearly $60 billion in assets under management (AUM) in just over a year since its launch. This impressive performance likely fuels BlackRock’s ambition to replicate its success in the European market.
The European crypto investment landscape is becoming increasingly competitive. Recent developments include Kraken securing a license to offer derivatives, joining established players like Bitstamp and FTX EU. BlackRock’s entry is expected to further intensify this competition, potentially leading to fee reductions and innovative product offerings as providers vie for market share. The U.S. market witnessed a similar competitive surge following the launch of Bitcoin ETFs in January 2024.
A key aspect yet to be revealed is the fee structure of the new ETP. This detail will significantly impact the product’s performance and attractiveness to investors. As Bloomberg senior analyst Eric Balchunas noted, “Don’t know the fee yet, that will be a big variable. U.S. ETFs blow away the rest of the world in cost and liquidity but either way shows commitment from the world’s biggest asset manager who has a big presence overseas.” The fee structure will be crucial in determining whether the European ETP can compete with the cost-effective and highly liquid U.S. offerings.
Balchunas also highlighted the dominance of U.S.-based Bitcoin ETFs, which currently hold 91% of the global market share. BlackRock’s expansion into Europe underscores the growing institutional interest in cryptocurrency investments and the potential for increased mainstream adoption. While BlackRock has yet to officially comment on the matter, this potential launch signals a significant step in the evolution of crypto investment products in Europe.
