BlackRock Expands Bitcoin Investments to Europe with Swiss-Domiciled Exchange-Traded Product
The world’s largest asset manager, BlackRock, expanded
its cryptocurrency offerings beyond the US by launching its first Bitcoin
exchange-traded product (ETP) in Europe.
As institutional demand for digital assets continues
to rise, the company has chosen Switzerland as the domicile for its new iShares
Bitcoin ETP, which has listings in Paris, Amsterdam, and Frankfurt, according to the product listing.
BlackRock’s European Bitcoin ETP Launch
The new offering followed the launch of the asset manager’s US spot Bitcoin ETF, which has reportedly attracted over $50 billion
in assets. The new ETP will now allow European investors
to gain exposure to Bitcoin without directly holding the asset.
According to the firm, the latest decision to expand
into Europe comes amid rising demand for institutional-grade crypto investment products. While Europe already has over 160 crypto-linked investment vehicles, its total market size of $17.3 billion remains far smaller than that of the
booming US sector.
BlackRock’s European Bitcoin ETP has a competitive fee structure designed to challenge existing crypto investment
products. Bloomberg reported that the product initially features a temporary
fee waiver of 10 basis points, reducing its expense ratio to 0.15% until the
end of 2025.
BlackRock the world’s largest asset manager, is launching a Bitcoin exchanged-traded product in Europe https://t.co/5QhkquYdfP
— Bloomberg (@business) March 25, 2025
By comparison, Europe’s leading crypto ETP, the
CoinShares Physical Bitcoin ETP, charges 0.25%, making BlackRock’s offering
significantly more attractive in the short term.
Commenting about the latest move, Meryem Habibi, Chief
Revenue Officer, Bitpace, the crypto payment gateway, told Finance Magnates:
“BlackRock’s launch of its first Bitcoin product in Europe is a landmark
development for crypto, displaying confidence in Bitcoin for mainstream
investments. With a keenness to mirror success in the US, this EU
exchange-traded product will provide a regulated and accessible investment
vehicle for Bitcoin.”
“Investment industry confidence in crypto sends strong
signals to consumers and merchants. Through this first in Europe, BlackRock is
not only legitimizing the asset class but also paving the way for increased
institutional and retail participation.”
Welcoming @iShares to the @NasdaqExchange Opening Bell. https://t.co/K9aO2FLBVs
— Nasdaq Exchange (@NasdaqExchange) January 11, 2024
Focusing on the Swiss Market
Switzerland has established itself as a hub for
digital asset innovation, offering a favorable regulatory environment that has
attracted major financial institutions. BlackRock has also created iShares Digital Assets AG,
a Zurich-based entity focused on cryptocurrency investments, reinforcing its
long-term commitment to the region.
As BlackRock continues to expand its presence in the
digital asset space, its latest move underscores the growing acceptance of
cryptocurrency in traditional finance. With its dominant position in the US market, the
firm’s success in Europe could further solidify institutional Bitcoin
investment as a mainstream financial strategy.
This article was written by Jared Kirui at www.financemagnates.com.