BlackRock to Launch Bitcoin ETP in Europe: A New Chapter in Crypto Investing
BlackRock is set to launch a Bitcoin ETP in Europe, linked to its U.S.-based Spot Bitcoin ETF that tracks Bitcoin. The product, likely domiciled in Switzerland, could be marketed as early as this month. This move comes on the heels of significant crypto milestones in 2024, including record-setting Bitcoin prices and successful ETF launches in the U.S., and reflects growing European demand for crypto investment vehicles despite fierce competition in the region.
BlackRock, the world’s largest asset manager with approximately $10 trillion under management, is poised to expand its cryptocurrency offerings by launching a Bitcoin Exchange-Traded Product (ETP) in Europe. This new product is set to be closely tied to BlackRock’s U.S.-based Spot Bitcoin ETF, which already boasts an impressive $58 billion in assets under management.
A Strategic Move in a Dynamic Market
According to Bloomberg sources, the forthcoming Bitcoin ETP will allow European investors to gain exposure to Bitcoin in a familiar, regulated structure. The ETP is expected to be domiciled in Switzerland, a strategic choice that reflects the country’s robust financial infrastructure and its growing reputation as a hub for crypto innovation. Market insiders suggest that BlackRock could begin marketing the product as early as this month, although the asset manager has yet to officially comment on the development.
Riding the Wave of 2024’s Crypto Milestones
The crypto market witnessed extraordinary developments in 2024, with Bitcoin reaching record price levels multiple times over the last ten months. The United States paved the way by approving two crypto-based ETFs this year, further fueling investor enthusiasm. BlackRock’s Bitcoin ETF, which exceeded $23 billion in net assets late last year, has emerged as a standout performer among various crypto investment vehicles. This success has generated significant interest in Europe, where the appetite for crypto exposure continues to grow despite fierce competition.
Navigating a Crowded European Landscape
The European market for cryptocurrency ETPs is highly competitive, with over 160 products available that track Bitcoin, Ethereum, and other digital tokens. However, the collective size of these products, around $17.3 billion, remains modest compared to the U.S. market. BlackRock’s entry with its Bitcoin ETP could significantly alter this landscape by providing a trusted and scalable investment option backed by the asset manager’s global expertise.
Investor Appeal and Market Outlook
“Being able to gain Bitcoin exposure via the ETP wrapper has proven to be a compelling combination for investors,” noted Samara Cohen, Chief Investment Officer of ETFs and Index Investments, and Jay Jacobs, US Head of Thematic and Active ETFs at BlackRock, in a recent blog post. Their comments underscore the increasing demand for investment vehicles that combine the familiarity of traditional financial instruments with the high-growth potential of digital assets.
As the crypto market continues to evolve, BlackRock’s strategic move could serve as a catalyst for further institutional adoption of cryptocurrency products in Europe. With regulatory clarity slowly emerging and investor interest on the rise, the introduction of this Bitcoin ETP might well set a precedent for future innovation in the space.
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