BlackRock, the world’s largest asset manager with over $10 trillion in assets under management, is making a significant move in the European crypto market with the launch of its first Bitcoin exchange-traded product (ETP). This development comes as Bitcoin continues its strong performance above $88,000, highlighting growing institutional interest in digital assets.
BlackRock’s European Bitcoin ETP: Key Details
The new iShares Bitcoin ETP will debut simultaneously on multiple European exchanges:
- Xetra and Euronext Paris (Ticker: IB1T)
- Euronext Amsterdam (Ticker: BTCN)
- Competitive fee structure: 0.15% expense ratio (with temporary 10 basis point waiver)
- Custody partner: Coinbase Global
Strategic Pricing and Market Positioning
BlackRock’s aggressive pricing strategy positions the IB1T as one of Europe’s most cost-effective crypto ETPs. At 0.15%, it significantly undercuts the current market leader, CoinShares International Ltd’s product, which charges 0.25%. This competitive pricing could catalyze greater institutional adoption in the European market, currently valued at $13.6 billion.
BUIDL: BlackRock’s Expansion into Tokenization
In a parallel development, BlackRock is expanding its digital asset offerings through the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). The fund, which recently surpassed $1 billion in AUM, is launching a new share class on the Solana blockchain, marking BlackRock’s first tokenized fund on a public blockchain.
Market Impact and Future Outlook
The launch of BlackRock’s European Bitcoin ETP could serve as a catalyst for broader institutional adoption in the region. With Bitcoin trading at $88,000 and showing strong momentum, the timing of this launch could accelerate the institutional adoption of digital assets in Europe.
Frequently Asked Questions
What is BlackRock’s Bitcoin ETP expense ratio?
The ETP has a base expense ratio of 0.15% with a temporary fee waiver of 10 basis points until the end of the year.
Where will the Bitcoin ETP be available for trading?
The ETP will trade on Xetra and Euronext Paris under ticker IB1T, and on Euronext Amsterdam under ticker BTCN.
Who is providing custody services for the Bitcoin ETP?
Coinbase Global will serve as the custodian for the physical Bitcoin backing the ETP.