BlackRock Bitcoin ETP SOON in Europe - What is that about?

Global asset management giant BlackRock is set to introduce a Bitcoin Exchange-Traded Product (ETP) in Europe, expanding its cryptocurrency investment offerings beyond the United States. This strategic move aims to cater to the growing demand for Bitcoin exposure among European investors. But what is an ETP? And what is so particular about a BlackRock Bitcoin ETP?

What is an ETP?

An ETP (Exchange-Traded Product) is a type of financial instrument that is traded on stock exchanges, similar to stocks. ETPs track underlying assets such as stocks, commodities, bonds, or cryptocurrencies and provide investors with exposure to these assets without directly owning them.

Types of ETPs:

1. ETFs (Exchange-Traded Funds) – Funds that track an index, sector, commodity, or other assets.
2. ETNs (Exchange-Traded Notes) – Unsecured debt securities issued by financial institutions that track an index or asset.
3. ETCs (Exchange-Traded Commodities) – Securities backed by physical commodities like gold or silver.

In the case of BlackRock’s Bitcoin ETP, it is a financial product designed to track the price of Bitcoin, allowing investors to gain exposure to the cryptocurrency without having to purchase and store Bitcoin directly.

What is particular about a BlackRock Bitcoin ETP?

BlackRock's forthcoming Bitcoin Exchange-Traded Product (ETP) in Europe is notable for several reasons:

1. Strategic Domicile: The ETP is expected to be domiciled in Switzerland, a country recognized for its favorable regulatory environment for cryptocurrency products.
2. Expansion Beyond North America: This launch marks BlackRock's first Bitcoin ETP offering outside of North America, following the success of its iShares Bitcoin Trust ETF (IBIT) in the U.S. and a similar product in Canada.
3. Leveraging Success of IBIT: BlackRock's IBIT has become one of the largest Bitcoin ETFs since its launch in January 2024, accumulating approximately $58 billion worth of Bitcoin as of February 4, 2025.
4. Competitive Fee Structure: BlackRock has been leading in reducing fees for its Bitcoin ETFs, with its U.S. IBIT product offering an expense ratio of 0.12% for the first $5 billion in assets, making it one of the most cost-effective options for investors.

By introducing this Bitcoin ETP in Europe, BlackRock aims to provide European investors with a regulated and efficient means to gain exposure to Bitcoin, leveraging its experience and success in the North American markets.

Rising Demand for Bitcoin Investment Products

The introduction of BlackRock's Bitcoin ETP in Europe comes in response to increasing interest from both institutional and retail investors seeking regulated avenues for Bitcoin investment. The European market for cryptocurrency ETPs is competitive, with over 160 products tracking various digital assets. BlackRock's entry is anticipated to enhance the accessibility and appeal of Bitcoin investments across the continent.

BlackRock's Expansion into European Cryptocurrency Market

BlackRock plans to domicile the Bitcoin ETP in Switzerland, leveraging the country's favorable regulatory environment for cryptocurrency products. The firm has established a Zurich-based entity, iShares Digital Assets AG, to oversee its digital asset initiatives in the region. This development follows BlackRock's successful launch of a Spot Bitcoin ETF in the U.S., which has amassed significant assets under management.

By launching a Bitcoin ETP in Europe, BlackRock is positioning itself to meet the evolving needs of investors in the cryptocurrency space. This initiative underscores the firm's commitment to providing innovative investment solutions in the rapidly growing digital asset market.