BlackRock plans to launch a spot Bitcoin ETP in Europe, expanding its crypto offerings after its U.S. Bitcoin ETF amassed nearly $60 billion. Learn how this move reflects growing institutional demand and what it means for the global crypto market.
BlackRock Expands Crypto Offerings Beyond the U.S.
BlackRock, the world’s largest asset manager, is preparing to launch a spot Bitcoin exchange-traded product (ETP) in Europe, according to sources familiar with the matter. The fund is expected to be domiciled in Switzerland, with promotional efforts possibly beginning as early as this month.
This move follows the remarkable success of BlackRock’s U.S.-listed Bitcoin ETF, the iShares Bitcoin Trust (IBIT), which has accumulated nearly $60 billion in assets since its launch in January 2024. The firm’s expansion into Europe reflects growing institutional demand for cryptocurrency investment products.
BlackRock’s Growing Focus on Bitcoin ETP
BlackRock CEO Larry Fink has been vocal about Bitcoin’s potential as a hedge against currency devaluation, particularly for investors in regions facing economic instability. Speaking at the World Economic Forum in Davos, Fink highlighted how institutional adoption could significantly drive Bitcoin’s value, citing a sovereign wealth fund’s consideration of a 2% to 5% allocation to Bitcoin.
There was a conversation, should we have a 2% allocation? A 5% allocation? If everybody adopted that conversation, Bitcoin would be worth $500,000, $600,000, or even $700,000, Fink stated.
Institutional Interest in Bitcoin ETFs on the Rise
The introduction of multiple U.S. spot Bitcoin ETFs has fueled massive institutional interest, with 12 funds collectively managing $116 billion, according to Bloomberg data. BlackRock’s IBIT has set records as the most successful ETF launch to date, now holding 585,732 BTC valued at over $56.5 billion as of February 6.
Despite this surge in institutional investment in the U.S., Europe’s crypto ETP market remains smaller, with a total market capitalization of $17.3 billion across more than 160 cryptocurrency-tracking products. BlackRock’s upcoming European Bitcoin ETP is expected to boost this market, providing investors with regulated access to Bitcoin.
What’s Next for BlackRock’s Crypto Expansion?
As the regulatory landscape for cryptocurrencies evolves, BlackRock’s European Bitcoin ETP marks a strategic move to meet rising institutional demand. With clearer regulations and increasing mainstream adoption, the firm’s expansion could solidify its dominance in the global crypto investment space.
Stay Updated on BlackRock’s Crypto Moves
With institutional adoption on the rise, BlackRock’s European Bitcoin ETP could reshape the continent’s crypto investment landscape. Stay tuned for official announcements and regulatory developments in the coming weeks.
