BlackRock Plans to Launch Bitcoin Exchange-Traded Product in Europe?

BlackRock is preparing to introduce a Bitcoin exchange-traded product (ETP) in Europe within the next few weeks, according to a source familiar with the matter. The move comes as both institutional investors and consumers show increasing interest in gaining exposure to cryptocurrencies.

The product is expected to be based in Switzerland, with BlackRock recently establishing a Zurich-based subsidiary, iShares Digital Assets AG, dedicated to digital assets, as revealed by a regulatory filing reviewed by Reuters.

BlackRock declined to comment on the matter.

The investment firm was a pioneer in offering exchange-traded products that track the spot price of Bitcoin after the U.S. Securities and Exchange Commission (SEC) approved such products in January 2024. This approval marked a significant milestone for the cryptocurrency sector, fueling optimism that cryptocurrencies would gain broader acceptance within traditional financial markets.

As of February 4, BlackRock’s primary Bitcoin-linked product, IBIT, had seen substantial growth, with net assets reaching $57.5 billion, according to BlackRock’s website. However, some global investors are unable to access these U.S.-domiciled products.

Bloomberg was the first to report on BlackRock’s plans for launching a similar product in Europe.

While the U.S. crypto industry has celebrated regulatory support under the current administration, cryptocurrency businesses in Europe are navigating increasingly stringent regulations. The European Union’s groundbreaking crypto regulation, the Markets in Crypto-Assets Regulation (MiCA), introduced in early 2023, is currently being rolled out across the continent.