The asset management giant, following the success of its spot ETF in the United States, is preparing to enter Europe with a financial product linked to Bitcoin.
BlackRock is gearing up to make its entry into the European digital asset market. According to Bloomberg, the financial giant is working on launching an Exchange Traded Product (ETP) on Bitcoin, which will likely be listed in Switzerland.
The move follows the success of the IBIT ETF in the United States, which has already amassed nearly $58 billion in assets under management, making it the largest Bitcoin-based financial product currently in circulation.
The European market for ETPs tied to digital assets, despite having over 160 products available on Bitcoin, Ethereum, and other tokens, is significantly smaller than its U.S. counterpart, with a total market size of $17.3 billion. However, the entry of a player like BlackRock could be a game-changer for the European sector.
The European expansion, however, will not be without challenges. Bloomberg ETF analyst James Seyffart has pointed out potential regulatory hurdles, suggesting that BlackRock’s strategy in Canada—where the ETF acts as a wrapper holding the U.S. ETF (IBIT)—may not be applicable in the European context. Seyffart commented on X:
“I have been informed that this is unlikely to be allowed in EU. So will be interesting to see what they charge assuming they launch a standalone product.”
BlackRock’s interest in the European market is yet another sign of the growing institutionalization of Bitcoin and the digital asset sector.
