BlackRock Expands Crypto Presence in Europe with Launch of Bitcoin ETP

BlackRock, the world’s largest asset manager, has expanded its footprint in the cryptocurrency market by launching its first Bitcoin exchange-traded product (ETP) in Europe.

The iShares Bitcoin ETP began trading on Tuesday on Xetra in Germany, Euronext Paris, and Euronext Amsterdam, under the tickers IB1T and BTCN, respectively.

BlackRock Brings Bitcoin ETP to Europe

This marks the firm’s first crypto-backed ETP offering outside North America, following the success of its US spot Bitcoin ETF, the iShares Bitcoin Trust (IBIT). With this launch, BlackRock aims to cater to institutional investors in Europe who are seeking regulated exposure to Bitcoin’s price movements in a familiar investment structure.

The move comes at a time when institutional interest in digital assets continues to grow. As such, BlackRock has provided an incentive for early adoption by temporarily reducing the ETP’s expense ratio to 0.15%, a competitive fee that happens to be one of the most cost-effective Bitcoin ETPs in the European market.

This fee reduction will last until the end of 2025 in a bid to help attract both retail and institutional investors who want to gain exposure to Bitcoin at a lower cost. Coinbase, which already serves as the custodian for the iShares Bitcoin Trust in the US, will also provide custody for the new European product.

BlackRock’s Impact on European Crypto ETF Efficiency

Despite Europe being home to over 160 digital asset-tracking products, the region’s market size is still small compared to the US, which dominates the global Bitcoin ETF landscape. In fact, according to Bloomberg ETF analyst Eric Balchunas, US spot Bitcoin ETFs hold about 91% of the total global assets. This is despite the fact that these investment vehicles were introduced only a year ago.

Balchunas had earlier speculated that BlackRock’s entry into the European market could improve liquidity and boost cost-efficiency, which could ultimately level the playing field between Europe and the US.

He also noted that while European investors generally show less enthusiasm for riskier, high-reward assets like Bitcoin, the presence of a major player like BlackRock could help bring a shift in this aspect.