BlackRock to Launch Bitcoin ETP in Europe
BlackRock, the world’s largest asset manager, is gearing up to introduce an exchange-traded product (ETP) linked to Bitcoin (BTC) in Europe, as reported by Bloomberg News on Feb. 5.
Key Points:
- The fund is expected to be domiciled in Switzerland.
- BlackRock could start marketing the product as early as this month.
- The new ETP could be launched in a similar way to the Canadian ETP.
- European market for crypto ETPs includes over 160 products tracking Bitcoin, Ethereum, and other digital assets.
War of Fees
According to Bloomberg ETF analyst James Seyffart, BlackRock Bitcoin ETPs in the US and Canada have fees of 25 basis points and 32 basis points (bps), respectively. However, European products already offer exposure to BTC through funds carrying a 25 bps fee.
Eric Balchunas expressed interest in learning about the fees charged by BlackRock in Europe. He highlighted that the US sets the standard in terms of cost and liquidity globally.
“Either way shows commitment from world’s biggest asset manager who has big presence overseas.”
A Relatively Small Market
The European market for crypto ETPs has a cumulative value of $17.3 billion, with over 160 products tracking Bitcoin, Ethereum, and other digital assets. Balchunas noted that the European crypto ETF landscape lags behind the US market.
BlackRock has an opportunity to bring its successful US products to Europe, but European investors have a lower appetite for riskier investment products compared to their US and Asian counterparts.
IBIT, BlackRock’s spot Bitcoin ETF, recorded $40.7 billion in net inflows as of Feb. 4, showing strong investor interest in the product.