BlackRock Plans European Bitcoin ETP Launch

• BlackRock plans to launch its first Bitcoin ETP in Europe, based in Switzerland.  
• Analysts predict fierce competition among European crypto ETP providers.  
• Bitcoin trade volumes in euros crossed €50 billion in 2024, signaling robust demand.

BlackRock, the world’s largest asset manager, plans to introduce its first Bitcoin ETP in Europe, according to Bloomberg. The ETP will be supported by MiCA regulations in Europe. This strategic move highlights the growing institutional interest in digital assets.

BlackRock’s European Bitcoin ETP: Coming Soon?

With over $10 trillion in assets, BlackRock might debut the Switzerland-based fund as early as this month. While there hasn’t been any official confirmation from the AUM, market observers point to the success of its U.S.-listed iShares Bitcoin ETF (IBIT) as a motivating factor. IBIT amassed nearly $60 billion in assets within a year of launch.

BlackRock’s European entry is part of a broader trend where asset managers, including Kraken and Bitstamp, are launching crypto-backed securities across the region. Europe has long embraced crypto investment products, launching its first regulated Bitcoin-backed ETP in 2015. 

Related: Bitcoin is Still in Early Adoption Stages – BlackRock

Europe’s Crypto ETP Market: Competition Heats Up

Since then, the market has expanded to over 100 products, covering nearly 40 different underlying crypto assets. BlackRock’s entry could spark further competition, much like the fee wars seen in the U.S.

Experts say BlackRock’s new ETP’s success hinges on its fee structure. European crypto ETP fees can go up to 2.5%, while BlackRock’s U.S. ETF charges just 25 basis points. Eric Balchunas, a Bloomberg analyst, emphasized that “fees will be a big variable in performance.”

Institutional Interest Keeps Growing

While U.S.-based Bitcoin ETFs dominate the global market with a 91% share, Europe provides a fertile ground for crypto-linked products, with over 160 offerings worth over $17 billion. Bitcoin’s prominence against fiat currencies, including the euro, continues to grow, with cumulative trade volumes topping €50 billion in 2024 alone.  

Related: BlackRock ETFs, BTC, and XRP—Is a Sovereign Wealth Fund the Next Big Catalyst?

BlackRock and Sovereign Wealth Funds

BlackRock, an established player in Bitcoin ETF offerings, is now getting ready to integrate cryptocurrency into sovereign wealth fund holdings. 

BlackRock’s CEO, Larry Fink, confirmed that his firm is working with SWFs to allocate funds to Bitcoin, citing inflation and fiat currency devaluation concerns. Fink suggested these investments might propel Bitcoin’s price as high as $700,000.