Introduction
On March 25, BlackRock debuted its iShares Bitcoin ETP in Europe, marking the company’s first cryptocurrency-related product outside of North America. This move follows the success of its spot Bitcoin ETF, IBIT, in the U.S.
The new ETP is available on Euronext Paris and Xetra Frankfurt under the ticker “IB1T,” and on Euronext Amsterdam as “BTCN.” It is supported by Bitcoin stored in cold storage by Coinbase Custody International.
BlackRock’s IBIT, which launched in January 2024, has garnered nearly $40 billion in net inflows, establishing it as the largest spot Bitcoin ETF in the U.S. In comparison, Fidelity’s FBTC has attracted $11.5 billion.
In another development in the digital asset space, BlackRock also extended its tokenized fund, BUIDL, to the Solana blockchain on the same day, increasing the number of supported blockchains to seven.
What is BlackRock?
BlackRock headquartered in New York, is the largest asset management firm globally. Founded in 1988, the firm manages over $10 trillion in assets across various markets.
BlackRock offers a comprehensive suite of financial products, including investment and retirement funds, as well as digital asset solutions. Its pioneering efforts in the financial industry, especially in the exchange-traded fund (ETF) space with its iShares brand, have solidified its position as a key player in the global finance landscape.
Product Details and Strategy
BlackRock’s new iShares Bitcoin ETP, as reported by Bloomberg, will initially waive trading fees for one year from its launch date. During this period, the expense ratio will be temporarily reduced by 10 basis points, bringing it to 0.15% until the end of the year.
This fee structure positions IB1T as one of the most affordable products in the market at launch. After the fee waiver ends, the standard expense ratio of 0.25% will apply. This launch marks BlackRock’s first venture into cryptocurrency-linked ETPs beyond North America.
Market Significance
This launch represents a significant step for BlackRock, expanding its footprint in the cryptocurrency-linked ETP market outside of North America. Bloomberg had earlier reported on BlackRock’s intention to move into this space.
Manuela Sperandeo, BlackRock’s Head of iShares Products for Europe and the Middle East, said, “This event marks a shift in the industry, with strong retail demand and growing institutional participation.”
The Cryptocurrency Market and Competition
BlackRock’s iShares Bitcoin Trust, launched in January 2024, rapidly amassed billions, becoming the most successful ETF debut in history. This achievement sets a high bar for future cryptocurrency-focused financial products.
Market Landscape and Custody Details
Although cryptocurrency-linked ETPs have been available on European stock exchanges for several years, the region’s market size, currently at $13.6 billion, is still relatively small compared to the U.S. market.
BlackRock has chosen Coinbase Global to custody the Bitcoin backing the iShares Bitcoin ETP. IB1T will be available to institutional and knowledgeable retail investors, issued through a Swiss-based entity.
Conclusion
The launch of the iShares Bitcoin ETP in Europe represents a major milestone for BlackRock in its digital asset journey. Building on the tremendous success of IBIT in the U.S., BlackRock is continuing to solidify its presence in the global cryptocurrency market.
This expansion into Europe not only broadens BlackRock’s reach to a larger investor base but also underscores the increasing acceptance of Bitcoin within the financial sector. Such developments could signal a promising outlook for the cryptocurrency market in the near future.
