BlackRock has officially entered the European cryptocurrency exchange-traded product (ETP) market, introducing a physically backed bitcoin strategy that has been highly anticipated.
The iShares Bitcoin ETP (IB1T) launches with a total expense ratio (TER) of 0.15%, which is set to increase to 0.25% at the end of the year once the temporary fee waiver concludes.
Based in Switzerland and supported by bitcoin stored securely in cold storage via Coinbase, IB1T has begun trading on Deutsche Boerse, Euronext Paris, and Euronext Amsterdam.
The ticker reflects that of the firm’s US-listed bitcoin ETF – the iShares Bitcoin Trust ETF (IBIT) – which, with $50.7bn in assets under management (AUM), is approximately three times larger than the second largest US spot bitcoin ETF.
The decision by US regulators to approve bitcoin ETFs in January 2024 significantly contributed to the cryptocurrency reaching new highs, receiving another boost in November following Donald Trump’s election as President, a figure believed to support digital assets.
Bitcoin surpassed the $100,000 milestone for the first time in December, but it has faced recent challenges, trading around $87,000 currently.
According to BlackRock, their decision to expand crypto ETPs to Europe was data-driven. A recent survey conducted with Focal Data revealed that 75% of professional investors are interested in a bitcoin ETP in the upcoming two years.
Jane Sloan (pictured), EMEA head of global product solutions at BlackRock, stated: “With 25 million cryptocurrency investors in Europe, we see ETPs as a crucial element in bridging the gap between crypto and traditional finance, thanks to their efficiency and convenience.
“In addition to ease of access, the iShares Bitcoin ETP is designed to provide institutional-grade security for bitcoin holdings to European investors.”
With a TER of 0.25%, BlackRock aligns with market rates for physical bitcoin ETPs in Europe, as competitors like CoinShares, WisdomTree, and Invesco recently adjusted their fees to this level in a competitive move within the industry.
In their respective announcements, all providers referenced the fee levels of spot bitcoin ETFs in the US as part of their reasoning for the new TERs.
The European crypto ETP market remains significantly smaller than the US market, with the largest product holding only $1.3bn in AUM.
Earlier this month, white-label provider HANetf launched Europe’s first leveraged bitcoin and Ethereum ETCs.
