BlackRock has introduced its iShares Bitcoin exchange-traded product (ETP) in Europe, marking an important milestone for Bitcoin’s institutional uptake in the region. This new product started trading on March 25 across key European exchanges, including Xetra, Euronext Amsterdam, and Euronext Paris. Nevertheless, analysts anticipate that the appetite for the ETP in Europe will be less vigorous compared to the U.S. market, where BlackRock’s iShares Bitcoin Trust ETF has seen substantial inflows. In fact, as of March 27, 2025, BlackRock’s U.S. ETF has secured over 50% of the market share for spot Bitcoin ETFs, with its assets valued at $49 billion.
Although the introduction in Europe represents a step forward for Bitcoin’s widespread acceptance, analysts from Bitfinex observed that U.S. spot Bitcoin ETFs have benefitted from strong institutional demand and significant retail investor engagement, which hasn’t yet been fully replicated in Europe. Regardless, they view BlackRock’s entrance into the European space as a significant advancement. They further noted that while the European market may require time to mature, BlackRock’s involvement could inspire other institutions to explore Bitcoin investment options.
Iliya Kalchev, an analyst at Nexo, stated that the initial inflows in Europe should not be regarded as a failure. Rather, he points to market structure differences as the reason for the slower initial engagement, suggesting that long-term success depends more on elements like infrastructure, education, and regulatory clarity. Kalchev stressed that BlackRock’s well-established reputation could facilitate momentum over time, even with modest early inflows.
In spite of the gradual progress in Europe, BlackRock’s Bitcoin ETP launch is still deemed a vital move towards the asset’s global acceptance. The firm, managing over $11.6 trillion in assets, could lead more institutional investors to investigate Bitcoin opportunities. As the regulatory landscape for cryptocurrencies evolves in Europe, analysts foresee an increase in institutional participation, especially as clearer regulations take shape.
The U.S. market has experienced swift growth, with Bitcoin ETFs exceeding $126 billion in cumulative assets by January 2025. However, it is expected that European Bitcoin ETFs will develop more gradually. As BlackRock’s Bitcoin ETP continues trading in Europe, its future success will hinge on its ability to adapt to the unique characteristics of the market and the underlying infrastructure that supports it. Despite these hurdles, analysts maintain an optimistic perspective about the long-term potential for Bitcoin’s adoption in Europe.
