Introduction
On March 25, BlackRock launched its iShares Bitcoin ETP in Europe. This event marks the company’s first cryptocurrency-backed product outside North America. The launch follows the success of its spot Bitcoin ETF, IBIT, in the U.S.
The ETP is listed on Euronext Paris and Xetra Frankfurt under the ticker “IB1T” and on Euronext Amsterdam under the ticker “BTCN.” The product is backed by Bitcoin held in cold storage by Coinbase Custody International.
BlackRock’s IBIT, launched in January 2024, has attracted nearly $40 billion in cumulative net inflows since its inception, making it the largest spot Bitcoin ETF in the U.S. Fidelity’s FBTC ranks second with $11.5 billion.
In a separate move related to digital assets, BlackRock also expanded its tokenized fund, BUIDL, to the Solana blockchain on the same day, bringing the total number of supported blockchains to seven.
What is BlackRock?
BlackRock is the world’s largest asset management firm, headquartered in New York, United States. Founded in 1988, the company currently manages over $10 trillion in assets globally.
BlackRock offers a wide range of financial products, including investment funds, retirement funds, and digital asset solutions. With continuous innovation, the company has become one of the most influential financial institutions worldwide, particularly in the exchange-traded fund (ETF) space through its iShares brand.
Product Details and Strategy
According to Bloomberg, BlackRock will waive trading fees for one year from the launch date. The product will feature a temporary fee waiver of 10 basis points, reducing the expense ratio to 0.15% until the end of the year.
This initial fee waiver positions IB1T as one of the lowest-cost products on the market at launch. Subsequently, a fee of 0.25% will apply. This marks BlackRock’s first foray into ETPs outside North America.
Market Significance
This is BlackRock’s first expansion into cryptocurrency-linked ETPs beyond North America. Bloomberg News had previously reported on the company’s plans for this move.
“This event reflects a pivotal moment in the industry – the convergence of established demand from retail investors with growing participation from professionals,” said Manuela Sperandeo, BlackRock’s Head of iShares Products for Europe and the Middle East.
The Cryptocurrency Market and Competition
BlackRock’s U.S. – listed iShares Bitcoin Trust debuted impressively in January 2024, quickly amassing billions of dollars in assets and achieving the most successful ETF launch in market history.
While cryptocurrency-linked ETPs have been trading on European stock exchanges for years, the region’s market size of $13.6 billion remains modest compared to the U.S.
Coinbase Global, a cryptocurrency exchange, will handle the custody of the physical Bitcoin backing the product, according to BlackRock. IB1T will be available to both institutional and knowledgeable retail investors and is issued by a specialized vehicle based in Switzerland.
Conclusion
BlackRock’s launch of the iShares Bitcoin ETP in Europe marks a significant step forward for the company in the digital asset space. Following the resounding success of IBIT in the U.S., BlackRock is steadily strengthening its position in the global cryptocurrency market.
This expansion into Europe not only allows the company to reach more investors but also highlights the growing acceptance of Bitcoin among financial institutions. This could serve as a positive signal for the cryptocurrency market in the near future.
