BlackRock has officially entered Europe’s cryptocurrency exchange-traded product (ETP) market with the launch of its physically backed Bitcoin strategy, the iShares Bitcoin ETP (IB1T).
The new product, which carries a total expense ratio (TER) of 0.15%, will see this fee increase to 0.25% by the end of the year as a temporary fee waiver expires. The iShares Bitcoin ETP is domiciled in Switzerland and its Bitcoin holdings are secured in cold storage via Coinbase. It will be traded on major European exchanges, including Deutsche Boerse, Euronext Paris, and Euronext Amsterdam.
The ticker for IB1T mirrors that of BlackRock’s U.S.-listed Bitcoin ETF, the iShares Bitcoin Trust ETF (IBIT), which holds approximately $50.7 billion in assets under management (AUM), making it three times larger than the second-largest U.S. spot Bitcoin ETF.
The decision to launch the product comes as Bitcoin saw significant price movements, reaching new highs following the approval of Bitcoin ETFs by U.S. regulators in January 2024. The cryptocurrency briefly surpassed the $100,000 mark in December but has since faced some volatility, currently trading around $87,000.
BlackRock’s move into the European market is based on recent data showing strong demand for Bitcoin ETPs. A survey conducted in partnership with Focal Data revealed that 75% of professional investors would be interested in Bitcoin ETPs within the next two years. Jane Sloan, EMEA head of global product solutions at BlackRock, emphasized the growing importance of cryptocurrency in Europe, noting that the region is home to 25 million cryptocurrency investors. She believes ETPs are essential for bridging the gap between digital assets and traditional finance by offering both efficiency and institutional-grade security.
In terms of pricing, the BlackRock Bitcoin ETP is positioned competitively within the European market, where other major players like CoinShares, WisdomTree, and Invesco have recently reduced their fees to 0.25% as part of an ongoing fee war.
Despite the growing interest in digital assets, Europe’s crypto ETP market remains significantly smaller than that of the U.S., with the largest product currently managing $1.3 billion in assets. However, the market is expanding, with recent developments such as HANetf’s launch of Europe’s first leveraged Bitcoin and Ethereum exchange-traded commodities (ETCs).
This launch marks a critical step in BlackRock’s ongoing efforts to expand its footprint in the cryptocurrency space, particularly within European markets.
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