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02/06/2025

BlackRock Prepares to Launch Its First BTC ETP in Europe

According to Bloomberg News on February 5, BlackRock — the world's largest asset manager — is planning to launch an exchange-traded product (ETP) linked to Bitcoin (BTC) in the European market. The product will be registered in Switzerland Sources familiar with the matter revealed that the ETP is expected to be registered in Switzerland and could go on sale as early as this month. This marks a significant step for BlackRock in expanding its presence across global digital financial markets. James

BlackRock Prepares to Launch Its First BTC ETP in Europe

According to Bloomberg News on February 5, BlackRock — the world's largest asset manager — is planning to launch an exchange-traded product (ETP) linked to Bitcoin (BTC) in the European market.

Product to Be Registered in Switzerland

Sources familiar with the matter revealed that the ETP is expected to be registered in Switzerland and could go on sale as early as this month. This marks a significant step for BlackRock in expanding its presence across global digital financial markets.

Bloomberg ETF analyst James Seyffart said BlackRock will likely structure the new ETP similarly to its approach in Canada, where it introduced an ETP that functions as a wrapper around IBIT — the company's spot Bitcoin ETF in the U.S.

Headwinds in the European Market

However, Seyffart also noted that BlackRock's chances of success in Europe are not particularly high. The European market already has products offering Bitcoin exposure at around 25 basis points (bps) — on par with BlackRock's fee in the U.S.

ETF analyst Eric Balchunas argued that one key factor making Europe less attractive than the U.S. is a difference in investor appetite. Unlike investors in the U.S. and Asia, European investors tend to show less enthusiasm for higher-risk investment products like Bitcoin ETPs.

That said, Balchunas noted that the move signals BlackRock's strong commitment to the crypto market, particularly given the firm's significant international footprint.

Europe's Crypto ETP Market: Small but Promising

The European digital asset ETP market currently has more than 160 products — including funds tracking BTC, Ethereum (ETH), and other digital assets — with a combined value of $17.3 billion. Even so, the region's market share remains a fraction of the U.S. market, where spot Bitcoin ETFs account for 91% of global market share.

According to Farside Investors, as of February 4, BlackRock's IBIT had recorded net inflows of $40.7 billion — more than three times that of the second-largest spot Bitcoin ETF, Fidelity's FBTC.

Can BlackRock Change the Game?

BlackRock's entry into the European Bitcoin ETP market could be a turning point, bringing greater liquidity and more competitive fees to the table. Still, given the distinct investor behavior in Europe, significant challenges remain.

Whether BlackRock can replicate in Europe the success it achieved in the U.S. is a story worth watching closely in the months ahead.

4o