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BlackRock, the world’s largest asset manager, is all set to launch a Bitcoin ETP in Europe, linked to its $58 billion U.S. Bitcoin ETF. The fund is expected to be based in Switzerland and could begin marketing as early as this month. Notably, the $58 billion US ETF tracking BTC will be available overseas, as per a Bloomberg report.
“Being able to gain Bitcoin exposure via the ETP wrapper has proven to be a compelling combination for investors,” Samara Cohen and Jay Jacobs, BlackRock’s chief investment officer of ETFs and index investments and US head of thematic and active ETFs respectively, wrote in a blog post last month.
BlackRock’s First Ever Crypto Linked ETP Outside North America
BlackRock is a leader in ETFs with over $4.4 trillion in assets. The new fund would be BlackRock’s first crypto-linked ETP outside of North America. At the World Economic Forum in Davos, CEO Larry Fink highlighted Bitcoin’s potential as a hedge against currency devaluation.
The launch of several U.S. Bitcoin ETFs last year led to a surge in demand, raising $116 billion across 12 funds. BlackRock’s iShares Bitcoin Trust (IBIT) is the largest, setting a record as the best-performing debut ETF in history.
More financial institutions are likely to join the crypto market due to Trump’s support and upcoming regulations offering clearer guidelines. New crypto rules also went live in the European Union in December.
Europe’s Growing Crypto ETP Market
BlackRock’s move follows a trend of investment firms expanding into crypto-backed securities in Europe. Kraken recently obtained a license to offer derivatives, joining other firms like Bitstamp and FTX EU. The European crypto ETP market is competitive, with over 160 products tracking Bitcoin, Ether, and other tokens. However, its $17.3 billion size is much smaller than the U.S. market.
BlackRock’s entry into the European crypto ETP market could intensify competition, with providers already offering fee waivers on some products, although some ETP fees reach up to 2.5%. Similar competition occurred when crypto funds launched in the U.S. in January 2024.
The fee structure of BlackRock’s ETP remains unclear, which could impact its performance. Senior Bloomberg analyst Eric Balchunas noted that the fee will be a key factor. He also pointed out that U.S. bitcoin ETFs dominate global markets in terms of cost and liquidity, holding 91% of the world market.
