BlackRock Launches Bitcoin ETP in Europe Amid Growing Crypto Demand

BlackRock, the global investment giant, has introduced a new Bitcoin ETP (Exchange-Traded Product) in Europe through its iShares fund. The product, listed under the ticker name IB1T on Xetra and Euronext Paris, will also be available on Euronext Amsterdam as BTCN. This marks BlackRock’s first foray into expanding its crypto ETP offerings outside the U.S., following the success of its spot Bitcoin ETF, IBIT, which launched in January 2023.

The new Bitcoin ETP will offer a temporary fee discount of 10%, reducing the expense ratio until the end of 2025. This competitive pricing strategy aims to attract investors in a market where European crypto ETPs currently manage $13.6 billion in assets, significantly smaller than the $105 billion managed by U.S.-based crypto ETPs.

BlackRock’s iShares fund has already made waves in the crypto space. Its spot Bitcoin ETF, IBIT, holds approximately 500,000 Bitcoin, valued at around $48 billion, making it the largest spot Bitcoin ETF globally. Since its launch, IBIT has consistently attracted billions of dollars in monthly inflows.

In Europe, the largest crypto ETP is currently operated by CoinShares International Ltd, managing $1.3 billion in Bitcoin with a 0.25% fee. BlackRock’s new offering will undercut this with a 0.15% fee, enhancing its appeal to cost-conscious investors.

The launch comes amid growing interest in crypto ETFs. In the U.S., spot Bitcoin ETFs recently saw nearly $800 million in net inflows, with BlackRock’s IBIT leading the charge, adding 6,342.47 BTC worth $535.58 million.

This move underscores BlackRock’s commitment to expanding its crypto product range, leveraging its global influence to tap into the rapidly evolving digital asset market.