The launch of the iShares Bitcoin ETP marks the asset manager’s entry into the European cryptocurrency ETP market.
According to Bloomberg, BlackRock has officially launched its first Bitcoin product in Europe. The iShares Bitcoin ETP is now available on several European stock exchanges. Previously, the asset manager launched the IBIT and iShares Bitcoin ETF on the Cboe index in Canada.
The new product is listed on three European trading platforms: Xetra in Germany and Euronext in Paris and Amsterdam. The product is traded under the ticker IB1T on Xetra and Euronext Paris, while on Euronext Amsterdam, it uses the symbol BTCN.
To attract investors during the initial phase, BlackRock introduced a temporary management fee of 0.15%, discounted from the standard 0.25% fee set to take effect after the end of the year.
The structure of the BlackRock iShares Bitcoin ETP
BlackRock’s ETP is not simply a wrapper (a financial structure that replicates another fund) of its U.S. ETF but an independent product specifically structured for the European market. For the European launch, BlackRock formed strategic partnerships with Coinbase as the custodian of the underlying bitcoins and Bank of New York Mellon as the administrator. The fund is issued through a special-purpose Swiss vehicle, intended for both institutional investors and informed individuals.
Impact on the European market
Manuela Sperandeo, Head of iShares Products for Europe and the Middle East at BlackRock, stated that a combination of strong demand from the retail market and growing interest from professional investors is generating real momentum.
Although Europe has had cryptocurrency ETPs for some time, the overall market remains smaller compared to its U.S. counterpart, with around $13.6 billion in assets under management (AUM) across the region. In comparison, BlackRock’s U.S. Bitcoin product (IBIT) quickly became one of the most successful ETF launches in market history, accumulating over $50 billion in AUM.
