What You Need to Know:
- BlackRock (BLK) intends to introduce a Bitcoin exchange-traded product (ETP) in Europe, with marketing potentially starting this month, according to reports from Bloomberg.
- This will mark BlackRock’s first foray into crypto-linked ETPs outside the United States.
- The firm’s U.S.-based Bitcoin ETF has successfully attracted nearly $60 billion in assets under management (AUM) in just over a year.
The world’s leading asset management firm, overseeing more than $10 trillion in AUM, BlackRock (BLK) is preparing to launch a Bitcoin exchange-traded product (ETP) in Europe. Bloomberg reported on Wednesday that the fund will be based in Switzerland. Marketing initiatives could commence shortly, presenting a significant opportunity for BlackRock in the European market.
This will be the first crypto-related ETP offered by the giant asset manager beyond the U.S. BlackRock’s iShares Bitcoin ETF (IBIT) has been a striking success, amassing almost $60 billion in assets within just over a year of its launch.
In addition to BlackRock’s move, a number of investment firms are also increasing their presence in Europe’s crypto-backed securities market. Recently, Kraken obtained a license to offer derivatives, joining others like Bitstamp and FTX EU.
The entrance of BlackRock into the European crypto ETP landscape could intensify the competitive responses observed among providers, including fee waivers for various products, with some ETP expenses being as high as 2.5%. This competition mirrors similar conditions seen in the U.S. following fund launches in January 2024.
Unanswered questions remain regarding the product, particularly concerning its fee structure, which is expected to significantly impact the performance of the ETP. “I don’t know the fee yet, that will be a big variable,” said Senior Bloomberg analyst Eric Balchunas. “U.S. ETFs lead the world in terms of cost and liquidity, but this nevertheless shows commitment from the world’s largest asset manager with a formidable international presence.”
Presently, U.S.-based Bitcoin ETFs hold a staggering 91% of the global market, according to Balchunas.
BlackRock has not issued any comments prior to publication.
