BlackRock (BLK), the global asset management titan overseeing over $10 trillion, is set to launch its first cryptocurrency-linked exchange-traded product (ETP) outside the U.S. with a new Bitcoin offering in Europe, according to a Bloomberg report.
The Switzerland-based fund could enter the marketing phase as early as this month, marking a significant step in the firm’s crypto strategy.
Key Details:
U.S. Success as a Catalyst:
The move follows the explosive performance of BlackRock’s U.S.-based iShares Bitcoin ETF (IBIT), which amassed nearly $60 billion in assets under management (AUM) within just over a year of its January 2024 launch.
European Crypto Race:
BlackRock’s entry intensifies competition in Europe’s growing crypto ETP market, where firms like Kraken, Bitstamp, and FTX EU are already expanding services. Kraken recently secured a license to offer derivatives, reflecting heightened institutional interest.
Fee Dynamics:
While U.S. Bitcoin ETFs dominate globally with lower fees and superior liquidity (holding 91% of the market), European ETPs often carry higher costs—some with expense ratios up to 2.5%. BlackRock’s pricing strategy for its European product remains undisclosed, a critical factor for investor appeal.
Analyst Insights:
Bloomberg senior ETF analyst Eric Balchunas emphasized the significance of BlackRock’s expansion, noting, “The fee structure will be pivotal. U.S. ETFs set a high bar for cost efficiency, but this launch underscores BlackRock’s commitment to crypto—especially in markets where they have a strong foothold.”
Unresolved Questions:
The ETP’s fee framework, regulatory positioning, and potential impact on Europe’s competitive landscape remain unclear. BlackRock had not provided additional commentary at the time of publication.
This strategic push aligns with a broader industry trend as traditional finance giants increasingly bridge the gap between digital assets and mainstream investment portfolios.
