BlackRock to Launch Bitcoin ETP in Europe, Expanding Crypto Strategy

BlackRock (BLK), the world’s largest asset management firm with over $10 trillion in assets under management, is set to list a Bitcoin exchange-traded product (ETP) in Europe. According to Bloomberg, the product will be based in Switzerland, and BlackRock could start marketing it as early as this month.

BlackRock’s Continued Crypto Expansion

This move marks BlackRock’s first crypto-linked ETP outside of the United States. Its U.S.-based iShares Bitcoin ETF (IBIT) has already seen immense success, amassing nearly $60 billion in assets in just over a year. Now, the company aims to replicate this success across the European market, which has seen a growing interest in crypto-backed securities.

Several other investment firms, such as Kraken, Bitstamp, and FTX EU, have also expanded their services to Europe in recent months. This new ETP by BlackRock could spur further competition, with providers offering fee waivers and varying expense fees on their products. Some European ETPs charge as much as 2.5% in fees. In the U.S., a similar competitive environment emerged after the launch of Bitcoin ETFs in January 2024.

While the launch of BlackRock’s Bitcoin ETP is highly anticipated, there are still several unknowns. The exact fee structure is one significant variable that could affect the product’s performance. Senior Bloomberg analyst Eric Balchunas commented, “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, this shows commitment from the world’s biggest asset manager who has a big presence overseas.” According to Balchunas, U.S.-based Bitcoin ETFs hold 91% of the global market share.

BlackRock has yet to comment on the development.