After the phenomenal success of its spot Bitcoin ETF in the U.S., BlackRock is now setting its sights on Europe, launching a new Bitcoin exchange-traded product (ETP) to tap into growing demand on the continent.
BlackRock’s Bitcoin ETF: The Fastest-Growing in History
In January 2024, the U.S. Securities and Exchange Commission (SEC) approved the first spot Bitcoin ETFs, marking a watershed moment for institutional crypto adoption. BlackRock quickly emerged as a dominant player in this space with the launch of the iShares Bitcoin Trust ETF (IBIT).
IBIT now manages $57 billion worth of Bitcoin, making it the largest spot Bitcoin ETF in the world by a significant margin.
This unprecedented inflow of capital has cemented Bitcoin as a mainstream asset class, giving traditional investors a regulated and institutional-grade vehicle to gain exposure to BTC without directly holding it.
Why No Spot Bitcoin ETF in Europe?
Unlike the booming ETF market in the U.S., European regulations pose significant challenges to launching a pure Bitcoin ETF. The primary obstacle is the UCITS framework (Undertakings for Collective Investment in Transferable Securities), which imposes strict diversification rules.
UCITS mandates that no single asset can exceed 10% of a fund’s total holdings, making a 100% Bitcoin ETF impossible under these regulations.
Instead, Europe has seen the rise of Exchange-Traded Notes (ETNs)—structured products that track Bitcoin’s price but come with key differences:
✅ ETFs – Investors own the underlying Bitcoin. Even if the issuer collapses, the Bitcoin remains protected.
⚠️ ETNs – These are debt instruments, meaning investors hold a claim on the issuer rather than the actual Bitcoin. If the issuer goes bankrupt, investors could lose their entire investment.
While most ETN issuers are financially stable, this added credit risk makes ETNs less attractive than spot ETFs.
BlackRock’s European Bitcoin ETP: A Game Changer?
Given these regulatory challenges, BlackRock will structure its European Bitcoin product as an ETP, managed out of Switzerland—a jurisdiction known for its crypto-friendly stance.
According to Bloomberg, marketing efforts are already in motion, and the product will soon be available across multiple European markets.
However, Europe’s Bitcoin ETP market remains a fraction of the U.S. market:
- 21Shares Bitcoin Core ETP – $308 million in assets under management (AUM).
- VanEck Bitcoin ETN (VBTC) – €692 million AUM (fully backed by Bitcoin).
- BlackRock’s IBIT in the U.S. – $57 billion AUM (by far the dominant player).
This massive discrepancy highlights the nascent stage of Europe’s institutional Bitcoin market.
Can BlackRock Unlock Europe’s Bitcoin Demand?
BlackRock’s aggressive expansion strategy in the U.S. has demonstrated its ability to dominate markets and drive mass adoption. The key question now is:
Can BlackRock’s entry into Europe accelerate adoption of Bitcoin?
With the world’s largest asset manager backing this initiative, coupled with growing European investor interest in Bitcoin, this move could ignite a significant shift in demand.
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