BlackRock, the world’s leading asset manager, is set to amplify its cryptocurrency product portfolio with a new Bitcoin Exchange Traded Product (ETP) launch in Europe. The news comes following the astounding success of its US-listed spot Bitcoin ETF, the iShares Bitcoin Trust (IBIT), according to an inside report from Bloomberg on Wednesday. The sources, wishing to remain anonymous due to the private nature of the plans, have revealed that this move marks BlackRock’s first venture into the European crypto ETP market.
The proposed fund is expected to be based in Switzerland and could debut as early as this month, according to the sources. BlackRock, traditionally focused on the North American market, expanded its crypto offerings with the launch of its IBIT fund, followed by the introduction of its iShares Bitcoin ETF on Cboe Canada.
The iShares Bitcoin Trust (IBIT) has made significant strides since its inauguration in January last year, accumulating a whopping $58 billion worth of Bitcoin as of February 4. The IBIT fund now ranks as the 31st largest ETF globally, across all categories, including traditional finance products, as per the data by VettaFi.
In addition to its impressive standing, IBIT has been leading the spot Bitcoin ETF market with a five-day winning streak. It has attracted nearly $934 million in net inflows since January 30. The inflows on February 3 alone were approximately $249 million, driving most of the spot Bitcoin ETF market’s gains.
The European crypto ETP market currently boasts over 160 products that track various digital assets. Despite this, the market size remains smaller than that of the US. BlackRock’s expansion into the European market comes at a time when Bitcoin has been hitting new highs this year. This surge is supported by increased regulatory clarity following the EU’s implementation of new crypto rules.
This strategic expansion by BlackRock into the European market could potentially spur further growth in the region’s crypto ETP market. It also reflects the increasing interest and acceptance of cryptocurrencies by major financial institutions. As the world’s largest asset manager, BlackRock’s move may encourage other global players to follow suit, further solidifying the integration of cryptocurrencies into mainstream finance.
