BlackRock Launches First Bitcoin ETP in Europe
BlackRock, the world’s largest asset manager with over $10 trillion in assets, has launched its first Bitcoin exchange-traded product (ETP) in Europe. This marks a milestone as BlackRock’s first Bitcoin ETP outside of North America. The move comes after the success of its U.S.-based iShares Bitcoin Trust (IBIT), which has amassed nearly $60 billion in assets under management (AUM) since its debut in January 2024.
As one of the top ETF issuers, BlackRock currently manages $4.4 trillion across its suite of ETPs. The newly introduced iShares Bitcoin ETP will initially have a total expense ratio (TER) of 0.15%, but this will increase to 0.25% at the end of the year once the temporary fee waiver expires.
The ETP ensures secure custody through Coinbase, which safeguards the private keys, while Bank of New York Mellon will oversee administration to facilitate seamless product management. To broaden investor access, IBIT will be listed on Xetra and Euronext Paris, strengthening its presence across major European financial markets. Notably, IBIT is designed for institutional-grade security that will provide a regulated and secure gateway for investors looking to gain exposure to Bitcoin (BTC).
Why Switzerland? A Crypto-Friendly Launchpad
Switzerland has long been recognized as a crypto-friendly jurisdiction, offering stable and clear regulations that make it an attractive hub for businesses seeking a secure and compliant environment for digital asset offerings. By establishing its European ETP in Switzerland, BlackRock is entering a highly competitive market already populated by major players like 21Shares, Bitwise, and CoinShares.
The country is home to several leading blockchain companies, including the Ethereum Foundation, Tezos, and Cardano. Additionally, Switzerland’s favorable tax policies, including low capital gains tax on crypto investments, further enhance its appeal as a destination for crypto ventures.
Additionally, Europe has been a leader in regulated Bitcoin-backed ETPs, launching its first product as early as 2015. The European Union’s Markets in Crypto-Assets (MiCA) framework is designed to provide clear guidelines for crypto assets, potentially making it easier for institutional investors to gain exposure to Bitcoin. The European market already hosts over 160 products tracking various cryptocurrencies, with a combined valuation of approximately $17.3 billion. What’s more, CNF reported that Europe leads in cryptocurrency banking, with 55 banks offering crypto custody, trading, and fiat conversions, surpassing Asia and North America.
Bitcoin’s market performance has been highly volatile. The cryptocurrency broke through the $100,000 mark for the first time in December and reached an all-time high of $109,000 in January during Donald Trump’s inauguration. However, it has been under pressure since then.
Currently, Bitcoin is trading at $86,705, with a 56.76% increase in trading volume, reaching $32 billion.