BlackRock Inc., the world’s largest asset manager, is making a major move into the European crypto market with the launch of its first Bitcoin exchange-traded product (ETP) outside North America.

This milestone comes on the back of the massive success of its $48 billion US-based iShares Bitcoin Trust, which set records as the fastest-growing exchange-traded fund (ETF) in history.

The newly introduced iShares Bitcoin ETP is set to begin trading on Xetra and Euronext Paris under the ticker IB1T and on Euronext Amsterdam under BTCN.

To attract early investors, BlackRock is offering a temporary fee waiver of 10 basis points, reducing the expense ratio to 0.15% until the end of the year.

This aggressive pricing strategy positions the product as one of the most affordable Bitcoin ETPs on the European market.

Once the fee waiver expires, the expense ratio will revert to 0.25%, matching competitors like CoinShares International Ltd.’s $1.3 billion physical Bitcoin ETP.

Why BlackRock’s Bitcoin ETP Matters

The introduction of BlackRock’s Bitcoin ETP in Europe signals a major turning point in the cryptocurrency investment landscape.

According to Manuela Sperandeo, BlackRock’s Head of Europe & Middle East iShares Product, this move reflects a growing convergence of retail and professional investor demand for crypto assets.

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“It reflects what really could be seen as a tipping point in the industry, the combination of established demand from retail investors with more professionals now really getting into the fold,” Sperandeo said in a recent interview.

Despite years of crypto-linked ETPs being available on European exchanges, the market remains relatively small, valued at $13.6 billion compared to the rapidly expanding US market.

BlackRock’s entry into this space is set to reshape the European crypto landscape, bringing increased credibility and potentially driving further growth.

Competitive Pricing and Custody

A key selling point of BlackRock’s iShares Bitcoin ETP is its cost-efficiency. At launch, the 0.15% expense ratio undercuts much of the competition, making it one of the cheapest options for investors seeking exposure to Bitcoin in Europe.

This competitive pricing is likely to attract both institutional and informed retail investors, broadening access to cryptocurrency investments across the continent.

To ensure the security of the physical Bitcoin backing the ETP, BlackRock has partnered with Coinbase Global Inc., a leading crypto exchange.

The product itself will be issued through a special purpose vehicle (SPV) based in Switzerland, ensuring compliance with local regulations and offering a robust framework for investors.

Building on US Success

BlackRock’s expansion into Europe comes after the resounding success of its iShares Bitcoin Trust in the US, which debuted in January 2024.

This fund quickly accumulated billions in assets, reflecting growing mainstream acceptance of cryptocurrencies as a legitimate asset class.

By extending its reach to European markets, BlackRock is signalling a long-term commitment to crypto and further validating Bitcoin as an integral part of diversified investment portfolios.

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What This Means for the European Market

BlackRock’s European Bitcoin ETP launch is more than just another product; it represents a key moment for the region’s crypto ecosystem.

With BlackRock’s brand recognition and market influence, the move could spur increased adoption among institutional investors who have been hesitant to enter the volatile crypto space.

Additionally, the competitive fee structure could push other providers to lower costs, benefiting investors across the board.

As regulatory frameworks evolve and investor appetite for digital assets continues to grow, BlackRock’s strategic expansion could pave the way for broader acceptance and innovation in cryptocurrency investments across Europe.