BlackRock, the largest asset management firm in the world with over $10 trillion in assets under management, is planning to launch a bitcoin exchange-traded product (ETP) in Europe. This news was reported by Bloomberg. The new fund will be based in Switzerland, and BlackRock may start marketing it as early as this month.
This will be BlackRock’s first crypto-linked ETP outside the United States. Their U.S.-based iShares Bitcoin ETF has been very successful, gathering nearly $60 billion in assets in just over a year since its launch.
BlackRock’s entry into the European market comes as many investment firms are looking to expand their offerings of crypto-backed securities in the region. For example, Kraken has recently obtained a license to offer derivatives, joining other firms like Bitstamp and FTX EU.
The introduction of BlackRock‘s ETP could increase competition among various providers in Europe. Some firms are already waiving fees on several products, while others have charged expense fees as high as 2.5%. A similar competitive environment was seen in the U.S. after the launch of bitcoin ETFs in January 2024.
However, there are still many uncertainties surrounding this new product, particularly regarding its fee structure. This aspect is crucial as it can significantly affect the ETP’s performance. Eric Balchunas, a senior analyst at Bloomberg, noted that the fee structure remains unknown and will be an important factor.
