Key Notes
- BlackRock now has a Bitcoin ETP operation in the European Union.
- Dubbed the IB1T, the fund is domiciled in Switzerland and tradable on major Swiss bourses.
- The fund can create a positive upside for Bitcoin price as EU investors’ adoption may drive its growth significantly
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BlackRock, the world’s largest asset manager, has finally unveiled its highly anticipated physically-backed Bitcoin ETP in Europe.
BlackRock launched the “iShares Bitcoin ETP (IB1T)” with a total expense ratio (TER) of 0.15%. This ratio will, however, increase to 0.25% at the end of the year when the temporary fee waiver ends.
IB1T Trades in Top European Stock Exchanges
The ETP has begun trading on major European stock exchanges, including Euronext Paris, Deutsche Boerse, and Euronext Amsterdam. IB1T, a physical product domiciled in Switzerland, is backed by Bitcoin and held in cold storage through the Coinbase exchange.
The Bitcoin product has a ticker symbol similar to BlackRock’s Bitcoin Exchange-Traded Fund (ETF), the iShares Bitcoin Trust ETF (IBIT). This product, which debuted in the US in January 2024, has amassed $50.7 billion in Assets Under Management (AUM).
BlackRock revealed that its decision to expand its crypto ETP offering to Europe is data-driven. According to a recent survey conducted in partnership with Focal Data, 75% of professional investors showed interest in a Bitcoin ETP within the next two years.
Jane Sloan, EMEA Head of Global Product Solutions at BlackRock, has expressed enthusiasm for the firm’s new physical Bitcoin ETP.
“With 25 million crypto investors across Europe, we believe ETPs have an important role to play to build a bridge between crypto and traditional finance through their efficiency and convenience,” Sloan noted.
The iShares Bitcoin ETP is built to allow institutional investors easy access to BTC and provide institutional-grade security for Bitcoin holdings for investors in Europe.
It is important to note that Europe still trails the US in the crypto ETP market, with the largest product having just $1.3 billion in AUM.
Last year, Valour, a subsidiary of DeFi Technologies, announced the launch of the first short spot ETP for Bitcoin (BTC) in the Nordics market.
Implications for Bitcoin
The price of Bitcoin skyrocketed to new highs following the spot Bitcoin ETF launch in January. The leading cryptocurrency further received a fresh boost in November following President Donald Trump’s election victory in the US.
Crypto market participants believe Trump’s second-term rule in the White House will establish favorable crypto policies, hence the increasing interest in Bitcoin. The flagship cryptocurrency broke over the $100,000 milestone for the first time in December. The coin eventually jumped to an All-Time High (ATH) above $109,000.
However, the price of Bitcoin has since dropped, and it is currently trading around $88,100. In the last 24 hours, BTC dropped slightly by 0.22%. However, the daily trading volume increased by 19.4% to $31.4 billion, indicating investors’ renewed interest.
With BlackRock’s launch of the new ETP, BTC is anticipated to regain momentum and even retest its ATH. This is based on the expected adoption by European investors.
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Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
