BlackRock Launches First Bitcoin ETP in Europe

• iShares Bitcoin ETP now available on major European exchanges.
• BlackRock offers a 0.15% fee discount to attract early investors.
• MiCA regulations provide a clear framework for crypto products.

BlackRock has expanded its footprint in the cryptocurrency market with the launch of a new Bitcoin exchange-traded product (ETP) in European markets. The new product, iShares Bitcoin ETP, is listed on major European markets like Paris, Amsterdam and Frankfurt. This comes after BlackRock’s US-listed Bitcoin ETF achieved more than $50 billion in assets under management.

BlackRock Debuts iShares Bitcoin ETP in Europe

The iShares Bitcoin ETP which operates from Switzerland is BlackRock’s first cryptocurrency offering outside North America. The Bitcoin ETP is accessible under IB1T and BTCN symbols on Xetra, Euronext Paris and Euronext Amsterdam platforms. BlackRock has partnered with Coinbase for custody services and Bank of New York Mellon for administrative functions, to ensure product security .

BlackRock offers investors a temporary fee discount to stimulate early BVTC investments. The ETP will give investors 0.15% expense ratio until the end of 2025 which makes it Europe’s most cost-effective Bitcoin ETP. The product offers competitive fees to attract institutional investors and retail clients who need regulated Bitcoin exposure.

BlackRock’s new product comes as European crypto markets lag behind the US in size and liquidity. Despite Europe’s more than 160 digital asset-tracking products, its total market value remains small in comparison. By offering this cost-effective product, BlackRock hopes to boost the region’s institutional interest in digital assets, a market still dominated by the US.

BlackRock’s new product  enters the market at a time when European crypto markets trail behind the U.S in terms of market size and liquidity levels. Europe’s more than 160 digital asset-tracking products have a small total market value compared to other regions.BlackRock offers this affordable product to promote institutional adoption of digital assets in Europe.

BlackRock’s European Expansion

The Bitcoin ETFs such as iShares Bitcoin Trust (IBIT) have experienced rapid growth in the U.S and amassed billions of dollars in investments. The successful rollout of these products in the U.S demonstrates a growing market demand for Bitcoin-based products. However, BlackRock faces business opportunities and challenges due to the less developed crypto market across Europe.

According to experts, BlackRock’s European market entry could affect how capital flows into cryptocurrencies. BlackRock’s ability to duplicate their US products’ success would have a major impact on European markets. However, experts caution that Europe’s limited trading volume and liquidity could hinder its competitiveness against the U.S.

The European regulatory landscape such as Markets in Crypto Assets (MiCA) framework has established clear regulations for crypto products. These regulations enable the launch of new cryptocurrency-based offerings and enhance investor protection. BlackRock’s ETP comes amid the growing regional trend of regulated crypto financial products.

Bitcoin’s price has shown limited reaction to the launch of BlackRock’s product. At the time of writing, Bitcoin price traded at $87,338.