BlackRock’s Bold Bitcoin Bet: The ETP Revolution in Europe

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Ah, BlackRock, the leviathan of finance, has entered the European arena, launching a Bitcoin exchange-traded product (ETP) amidst much fanfare. One can almost hear the trumpets blaring as the iShares Bitcoin ETP struts onto multiple European stock exchanges, as if it were a triumphant general returning from conquest.

Trading commenced on March 25 on precious Xetra, Euronext Amsterdam, and Euronext Paris. What a day! According to the sacred texts of BlackRock’s product page, this move follows the roaring success of its iShares Bitcoin Trust (ETF) in the US, which has amassed a truly staggering $50.7 billion in assets under management. Yes, dear reader, that’s not chump change — it accounts for about 2.73% of the entire Bitcoin (BTC) supply. The gods of finance must be smiling down!

Yet, in a sage moment of caution, Stephen Wundke, the director of strategy and revenue at crypto investment firm Algoz, proclaimed to CryptoMoon that “the availability of the iShares Bitcoin ETP may not have the same reaction across Europe” as it did in the glitzy US:

“Quality investment products through regulated asset managers have been more available throughout Europe than in the US, and secondly, Bitcoin is also more easily purchased. […] However, the ability for traditional family offices across Europe to hold a small percentage of their asset base in ‘digital gold’ is no doubt a good thing. […] Just don’t expect $60 billion of purchases in the first quarter.”

Product details and fee structure

Now, let us ponder the details of this new ETP. It trades under the illustrious ticker IB1T on Xetra and Euronext Paris, while on Euronext Amsterdam, it goes by the rather unassuming BTCN. If the winds of Bloomberg’s ambition are to be believed, this product emerged with a temporary fee waiver of 10 basis points, curtailing its expense ratio to a tantalizing 0.15% until the close of 2025. Who wouldn’t want to save a few coins, right?

The reigning champion of European crypto ETPs, the CoinShares Physical Bitcoin ETP, charges a royal sum of 0.25%. In comparison, BlackRock’s offering is like a discount bin at a dollar store. It’s a race to the bottom, and some may find it refreshing!

“There is no doubt BlackRock’s aggressive fee structure was designed to keep competitors out of the market while questioning the commitment of any new entrants,” mused Wundke with a smirk. Such cutthroat strategies are music to the ears of investors, showering the market with healthy competition and ultimately benefiting our dear digital currencies.

iShares expanding to Europe

Behold! This marks BlackRock’s inaugural issuance of a crypto ETP beyond the confines of North America. Manuela Sperandeo, the head honcho of BlackRock’s Europe and Middle East iShares Product, waxed poetic to Bloomberg:

“From Trump to Biden and now Trump again, US digital asset policy has been largely inconsistent. In contrast, the EU has steadily embraced compliant blockchain adoption — offering the regulatory stability companies are looking for.”

And speaking of stability, a recent earnings report unashamedly flaunted that BlackRock managed a jaw-dropping average of over $11.55 trillion in the fourth quarter of 2024. Beyond this Bitcoin treasure chest, they also unleashed their Grayscale Ethereum Trust ETF, the top Ether (ETH) ETF, with $3.46 billion in assets under management. One wonders if they sleep on a bed of money—or at least dream of it! 💰

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2025-03-25 14:56