BlackRock, the world’s leading asset management firm, is planning to launch a new exchange-traded product (ETP) tied directly to Bitcoin in Europe. This initiative follows the success of its $58 billion U.S. Bitcoin ETF, which has seen immense investor interest. According to sources familiar with the matter, the fund is expected to be based in Switzerland, with marketing efforts possibly beginning as early as this month.
As a dominant player in the ETP market, BlackRock manages over $4.4 trillion in these products. While crypto-linked ETPs have been available in European exchanges for years, this will be BlackRock’s first venture into crypto-related ETPs outside North America. The company has consistently shown support for digital assets, with CEO Larry Fink recently stating at the World Economic Forum in Davos that Bitcoin serves as a hedge against currency devaluation.
The launch of Bitcoin ETFs in the U.S. last year fueled surging demand for the asset, bringing in $116 billion across 12 different funds, according to Bloomberg data. BlackRock’s iShares Bitcoin Trust (IBIT) has emerged as the largest in this category, achieving the best-performing ETF debut in history.
Following Donald Trump’s re-election, crypto prices have surged, with Bitcoin hitting an all-time high of $109,241 in January. Trump’s pro-crypto stance and the anticipation of new regulatory frameworks are expected to encourage further institutional adoption. Meanwhile, the European Union implemented new cryptocurrency regulations in late December.
Competition in the European crypto ETP market is fierce, with over 160 products tracking Bitcoin, Ether, and other tokens. However, Europe’s total market size remains smaller, valued at approximately $17.3 billion, compared to the U.S. market.
In a blog post last month, Samara Cohen, BlackRock’s CIO of ETFs and index investments, and Jay Jacobs, the firm’s U.S. Head of Thematic and Active ETFs, stated:
“Investors have found the opportunity to gain Bitcoin exposure through the ETP structure to be an attractive option.”
