BlackRock Inc., the world’s largest exchange-traded fund (ETF) issuer, may be on the verge of launching a bitcoin exchange-traded product (ETP) in Europe as early as this month, according to Bloomberg News. This move would reflect the success of its iShares Bitcoin Trust (IBIT), which debuted in the U.S. last year and has attracted $37.5 billion in investments, reaching a total value of $59.3 billion.
According to reports, the new fund would be “directly tied to Bitcoin in Europe” and is likely to be domiciled in Switzerland. Marketing efforts could begin in the coming days, positioning BlackRock as a key player in the growing European crypto asset market.
IBIT was among the first ten spot bitcoin ETFs launched following the U.S. Securities and Exchange Commission’s (SEC) approval in January of last year. Later, in July, spot Ethereum ETFs followed. Headquartered in New York, BlackRock’s iShares unit manages 438 ETFs in the U.S., with total assets of $3.04 trillion, and oversees numerous additional funds across Europe.
In the U.S. market, bitcoin ETFs have been attracting significant capital inflows despite recent cryptocurrency price volatility. In recent weeks, bitcoin’s price dropped nearly $10,000 from its all-time high, settling around $97,000, as global markets reacted to former President Donald Trump’s announcement—and subsequent pause—of 25% tariffs on Canadian and Mexican imports. Institutional adoption of bitcoin as a hedge against inflation has strengthened investor interest in these funds.
BlackRock’s European expansion plan follows in the footsteps of DWS, another traditional asset manager that recently entered the crypto ETP market. Firms like WisdomTree, Fidelity, and Invesco have also expanded their presence in this sector, intensifying competition and further solidifying the institutional crypto asset market.
This competitive landscape has led to a steady decline in fees among major crypto ETP providers. In January, CoinShares, WisdomTree, and Invesco announced further fee reductions, highlighting the aggressive nature of the sector. Meanwhile, the European Securities and Markets Authority (ESMA) issued a warning about the volatility of crypto assets, stating that the recent bitcoin price surge “confirms their highly volatile nature.”
Amid these market developments, CrossBorder Capital’s managing director, Michael Howell, stated during ETF Stream’s ETF Ecosystem Unwrapped 2024 event that he expects bitcoin to reach $250,000 within the next three to five years as confidence in the U.S. Treasury market wanes.
The SEC’s approval of spot bitcoin ETFs in the U.S. has triggered a ripple effect in Europe, accelerating fee reductions and increasing interest in crypto ETPs. With its new initiative in the European market, BlackRock is positioning itself to capitalize on this growing demand and further strengthen its leadership in digital asset investment.