BlackRock, the biggest asset manager with over $9.5 trillion, is getting ready to launch its first Bitcoin exchange-traded product (ETP) in Switzerland.
If all goes as planned, the product could hit the market by the end of this month. This would be BlackRock’s first big crypto move outside North America, according to Bloomberg.
Mind you, the firm saw massive success with its U.S. spot Bitcoin ETF, iShares Bitcoin Trust (IBIT) last year. Since launching in January 2024, IBIT has pulled in around $58 billion in Bitcoin, making it one of the largest Bitcoin ETFs globally. It has been on a winning streak, pulling in nearly $934 million in inflows since January 30, with $249 million added just yesterday, according to Farside Investors.
Europe’s crypto ETP market is much smaller than the U.S., valued at $17.3 billion, but it already has over 160 products tracking Bitcoin, Ether, and other digital assets. BlackRock is looking to tap into this market. CEO Larry Fink recently praised Bitcoin as a “hedge against currency debasement” at the World Economic Forum in Davos.
Moreover, Switzerland is the perfect launchpad. The country has been crypto-friendly for years with stable regulations to attract major financial firms
BlackRock’s Chief Investment Officer of ETFs, Samara Cohen, and head of U.S. thematic ETFs, Jay Jacobs, said in a statement on the blog, “Being able to gain Bitcoin exposure via the ETP wrapper has proven to be a compelling combination for investors.”
But there’s a catch. Bloomberg ETF analyst James Seyffart first thought BlackRock might use a “wrapper” approach where the ETP would hold shares of its U.S. IBIT fund. But that plan seems off the table. “I have been informed that this is unlikely to be allowed in the EU,” Seyffart posted on X. That means BlackRock will have to launch a separate European Bitcoin ETP.
Pricing will also be key. Some European Bitcoin ETPs already have ultra-low fees, with companies like Valour even offering a zero-fee product. Investors will be watching closely to see how BlackRock competes.
Meanwhile, the U.S. spot Bitcoin ETF market is on fire, as it dominates 91% of global market share. Europe is a different game. Investors there have been more cautious with high-risk assets. Bloomberg ETF analyst Eric Balchunas said BlackRock’s challenge will be getting European investors just as excited as those in the U.S.
Also Read: El Salvador Adds 20 BTC to Its Reserves in the last Week
