BlackRock Launches Bitcoin ETP in Europe with Fees of Just 0.15%
BlackRock, the world’s largest asset manager, has launched its first Bitcoin ETP (exchange-traded product) in Europe, expanding its presence in the global crypto investment space.
The move follows the success of its US-listed Bitcoin ETF, the iShares Bitcoin Trust (IBIT), which currently has $50.6 billion in assets under management (AUM).
BlackRock’s Bitcoin ETP Launches in Europe
BlackRock’s new iShares Bitcoin ETP will be available for trading on Xetra and Euronext Paris under the ticker IB1T, and on Euronext Amsterdam under the ticker BTCN.
This is the first time BlackRock has offered a crypto-backed ETP outside of North America. The move represents a significant increase in institutional interest in digital assets.
To encourage early adoption, BlackRock is offering a fee incentive of just 0.15% for the ETP until the end of the year. This makes the product one of the lowest-cost Bitcoin ETPs in the European market, attracting interest from retail and institutional investors looking to gain exposure to digital assets at a competitive price.
Europe has long been at the forefront of launching crypto ETPs, with more than 160 products tracking digital assets now available. However, the market size in Europe is still significantly smaller than in the United States.
US Bitcoin ETF Dominance
Bloomberg analyst Eric Balchunas points out that US spot Bitcoin ETFs currently dominate the global market. He says the US now holds about 91% of the total assets, despite the fact that spot Bitcoin ETFs were only launched a year ago.
“Europe is virtually absent from the rankings of spot Bitcoin ETFs in terms of size. US ETFs, which are only a year old, already account for 91% of the global market,” Balchunas said in a February post.
Balchunas also said that Europe has struggled to compete on liquidity and costs. He predicted that BlackRock’s entry into the European market could provide a major boost in cost efficiency and trading volumes as seen in the US.
“If BlackRock can replicate some of its US success in Europe, it will be successful. However, Europeans are generally less risk-averse than US or some Asian investors,” he added.
Potential for Bitcoin Growth in Europe
BlackRock’s launch of a Bitcoin ETP in Europe is seen as a major step forward in driving institutional adoption of digital assets. As access to Bitcoin becomes more widespread, this could increase demand for BTC. However, some experts remain skeptical, pointing out that Bitcoin's on-chain trading volume has declined significantly since 2017.
"The demand for BTC is now mainly coming from centralized derivatives such as futures and ETFs/ETPs, with BlackRock being one of the main drivers. On-chain trading volumes are very low, while speculative volumes based on derivatives continue to increase," analyst Vini Barbosa commented.
Bitcoin Price Little Change
Despite news of BlackRock launching a Bitcoin ETP in Europe, Bitcoin's price has not seen a major change. Over the past 24 hours, BTC is down 0.55%. At the time of writing, Bitcoin is trading at $86,601.
MiCA Regulation Plays a Key Role
The role of Europe’s Markets in Crypto Assets (MiCA) regulation cannot be overlooked. It provides a clear and structured legal framework that makes it easier for companies like BlackRock to launch new products in the crypto space.