The asset management powerhouse BlackRock has introduced its inaugural bitcoin product in Europe: a physically backed bitcoin exchange-traded product (ETP).
The iShares Bitcoin ETP commenced trading on Tuesday on the Xetra exchange in Germany as well as on Euronext exchanges in Paris and Amsterdam. It will be available under the ticker IB1T on both Xetra and Euronext Paris, and as BTCN on Euronext Amsterdam.
This latest launch follows BlackRock’s introduction of a bitcoin ETF in the U.S. last year. The U.S. ETF, iShares Bitcoin Trust (IBIT), has amassed over $50 billion in assets, establishing itself as the largest spot bitcoin ETF in the world. Although BlackRock CEO Larry Fink has expressed skepticism towards bitcoin in the past, he seems to have adjusted his stance in response to client demand.
With the unveiling of a European bitcoin ETP, BlackRock is providing institutional investors in the region with a regulated and familiar way to gain exposure to bitcoin’s price movement. While crypto ETPs have been available in Europe for several years, they still trail behind U.S. bitcoin ETFs regarding total assets.
The management fee for BlackRock’s bitcoin ETP is set at 0.25%, which can be reduced to 0.15% through a temporary fee waiver effective until the end of 2025. Coinbase is utilized for custody purposes.
As the largest asset manager in the world, overseeing more than $10 trillion in assets, BlackRock wields considerable scale and distribution capabilities. This development underscores a growing mainstream acceptance of bitcoin as a significant institutional asset class.
