Quick Takes
- $11 trillion asset manager BlackRock is reportedly working on launching an exchange-traded product (ETP) backed by Bitcoin in Europe. The ETP could be a wrapper that holds shares of the company’s US-based iShares Bitcoin Trust ETF (IBIT).
- BlackRock launched a similar product in Canada last month, allowing investors to gain Bitcoin exposure through IBIT within their brokerage accounts. The Wall Street giant holds $57 billion in BTC under its flagship ETF.
- Over 160 crypto-focused investment products exist in Europe but collectively, all of them have an AUM of $17.3 billion, which is just a fraction of the $116.4 billion US Bitcoin ETF market.
- On February 5, BlackRock purchased an additional 2,250 BTC, worth nearly $250 million, for the iShares Bitcoin ETF, increasing its net assets to about $58 billion.
American asset management behemoth BlackRock is set to launch an exchange-traded product (ETP) in Europe that will be backed by Bitcoin (BTC). This will be a major expansion for the Wall Street firm’s BTC investment products, having already amassed $58 billion through its iShares Bitcoin Trust (IBIT) ETF in the U.S.
BlackRock To List Bitcoin-Backed ETP In Europe
Bloomberg’s senior ETF analyst James Seyffart broke the news on X, where he stated that the proposed European Bitcoin ETP is poised to follow the same model BlackRock implemented in Canada, where the fund acts as a wrapper that holds shares of U.S.-focused IBIT.
According to Bloomberg, the fund is likely to be domiciled in Switzerland and BlackRock could begin marketing it as soon as this month. However, the company has not provided any further details about the ETP.
The European market already has more than 160 investment products that track the price of Bitcoin (BTC), Ether (ETH), and other major cryptocurrencies, valued at $17.3 billion, but they are just a fraction of the valuation of the U.S.’ $116.4 billion Bitcoin ETF market, commanded BlackRock’s IBIT ($57.7 billion), Fidelity’s FBTC ($21.08 billion), and Grayscale’s GBTC ($19.84 billion).
While Europe has allowed crypto-focused ETPs for years, this will be the first time BlackRock introduces ETF products beyond the U.S. and Canada. Last month, the company, which oversees over $4.4 trillion in ETF assets, launched its iShares Bitcoin ETF in the Canadian market by listing it on Cboe Canada, allowing domestic investors to access its flagship Bitcoin product.
In Canada, the ETF trades under the tickers IBIT and IBIT.U for U.S. dollar-denominated units, offering investors direct Bitcoin exposure within their brokerage accounts. The iShares Bitcoin Trust reflects the price performance of BTC, minus the fund’s expenses and liabilities, by allocating nearly all of its assets to the ETF.
BlackRock CEO Emphasizes Bitcoin’s Potential As Inflationary Hedge And Alternate Store-of-Value
The global interest in Bitcoin has skyrocketed, largely thanks to the launch of multiple spot Bitcoin ETFs in the US over a year ago. Since their debut, these funds have collectively accumulated a staggering $116 billion in assets, as per Bloomberg data. IBIT leads the chart among the Bitcoin ETFs and is already regarded as having had the best debut year in the ETF markets’ 35-year history.
In 2024, U.S. Bitcoin ETFs recorded net inflows exceeding $35 billion, averaging $144 million in new investment each trading day. The crypto ETF sector continues to break records, with analysts from Steno Research predicting that an additional $48 billion in Bitcoin ETF net inflows can be expected in 2025.
Speaking at the World Economic Forum in Davos last month, BlackRock CEO Larry Fink emphasized Bitcoin’s potential as a hedge against currency debasement, further reinforcing the flagship crypto asset’s appeal as an alternative store of value.
In a recent blog post, BlackRock executives Samara Cohen and Jay Jacobs wrote that being able to gain exposure to Bitcoin through the ETP wrapper has “proven to be a compelling combination for investors”.
Despite the short-term bearish outlook, which saw BTC’s price slip by 3% from $102,000 to about $97,672 due to over $88 million worth of the coin liquidated, BlackRock continued to buy more Bitcoin through its IBIT ETF. On February 5, the company managing over $11 trillion worth of assets purchased 2,520 BTC, valued at ($248.34 million).
The mainstream adoption of Bitcoin is not just spearheaded by institutional investors, as nation-states, led by El Salvador and the United States, are exploring the prospect of establishing a strategic Bitcoin reserve. The apex cryptocurrency’s long-term prospects were bolstered by President Donald Trump’s executive order from earlier this week directing the Treasury and Commerce departments to create a sovereign wealth fund within the next year.
At the time of writing, Bitcoin (BTC) is trading at $98,620 – up 1.33% in the last 24 hours.
