BlackRock, the asset manager behind the largest U.S. Bitcoin ETF, is expanding into the European crypto market with its first Bitcoin exchange-traded product (ETP) outside of North America. This launch is a smart move to tap into the growing interest in cryptocurrency in new markets, following the impresive success of similar products in the U.S.
As per the details shared on ishares’ website, the iShares Bitcoin ETP will debut on Xetra and Euronext Paris under the ticker IB1T, and on Euronext Amsterdam as BTCN on Tuesday. Although cryptocurrency-linked ETPs have been available on European exchanges for years, the market in Europe is much smaller, worth $13.6 billion, compared to the larger market in the U.S.
Coinbase To Custody the ETP
BlackRock’s iShares Bitcoin Trust ETF (IBIT) is the biggest among the 12 U.S. spot Bitcoin ETFs, with over $50 billion in assets and nearly $40 billion in cumulative inflows, according to SoSoValue data. Coinbase, which handles custody for IBIT, will also manage the new European product.
This Bitcoin exchange-traded product (ETP) will be available to both institutional and knowledgeable retail investors, and it will be issued by a special purpose vehicle based in Switzerland.
IB1T Launches with 0.15% Fee Discount
The European ETP will have a temporary fee discount of 0.15%, valid until the end of 2025. The fee waiver makes IB1T one of the cheapest Bitcoin ETPs available at launch. In comparison, Europe’s largest crypto ETP, CoinShares’ $1.3 billion Bitcoin product, charges a 0.25% fee — the same fee that IB1T will have after the waiver period ends.
Manuela Sperandeo, BlackRock’s head of Europe & Middle East iShares Product, said that the launch of the product marks a significant turning point in the industry. She explained that it represents a mix of growing demand from retail investors and an increasing interest from professional investors.
BlackRock Aims To Double Its Customer Base
BlackRock’s European launch is part of its strategy to double its customer base, growing from 9 million to 19 million in three years, while also expanding its $1 trillion market share. The move comes as more U.S. asset managers, like Franklin Templeton, enter the EU market with crypto and tokenized products. Besides, the EU’s new Markets in Crypto Assets (MiCA) regulations provide a clear framework, supporting the rise of innovative investment options in the region.
In recent years, BlackRock has been a vocal advocate for digital assets. BlackRock CEO, Larry Fink, recently called Bitcoin a possible “safe haven” during the World Economic Forum. While not fully endorsing it, he suggested Bitcoin could reach $700,000, seeing it as a potential solution to currency devaluation and political instability.
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