BlackRock is preparing to introduce a new exchange-traded product (ETP) tied directly to Bitcoin in Europe, following the success of its US$58 billion US-based cryptocurrency ETF.
Sources familiar with the matter suggest that the fund will likely be domiciled in Switzerland, with BlackRock potentially beginning its marketing efforts as early as this month.
However, as these individuals were not authorised to discuss the details publicly, they remained anonymous. A spokesperson for BlackRock declined to comment.
Managing over US$4.4 trillion in assets across its exchange-traded funds, BlackRock is a leading player in the ETF industry.
While cryptocurrency-linked ETPs have been available on European exchanges for years, this would mark BlackRock’s first foray into the crypto-related ETP market outside North America, Bloomberg reports.
The firm has been a vocal proponent of digital assets in recent years.
At the World Economic Forum in Davos last month, BlackRock CEO Larry Fink highlighted Bitcoin’s potential as a hedge against currency devaluation.
The launch of several US ETFs directly tied to Bitcoin a year ago sparked a surge in investor demand, attracting approximately US$116 billion across 12 funds.
Among these, BlackRock’s iShares Bitcoin Trust (IBIT) emerged as the largest, achieving the most successful ETF debut in history.
Bitcoin prices have experienced a strong rally since the re-election of US President Donald Trump, reaching a record high of US$109,241 in January.
Trump’s vocal support for the crypto industry, alongside expectations of new regulations, has encouraged greater institutional involvement.
Meanwhile, in Europe, updated cryptocurrency regulations came into effect in late December.
The European market for cryptocurrency ETPs remains highly competitive, with over 160 products tracking Bitcoin, Ether, and other digital assets.
However, the region’s total market value of US$17.3 billion is still significantly smaller than that of the United States.
In a blog post last month, BlackRock executives Samara Cohen and Jay Jacobs noted that offering Bitcoin exposure through an ETP structure has proven to be an attractive investment option for many investors.
Featured image credit: edited from freepik
