BlackRock Introduces Bitcoin ETP in Europe with Low Fees

Highlights:

• BlackRock has launched its first Bitcoin ETP in Europe with a temporary fee waiver.
• The European crypto ETP market is smaller than the US but may grow with BlackRock’s entry.
• The new Bitcoin ETP offers a regulated way for European users to gain exposure to Bitcoin.

BlackRock, a leading global asset manager, has introduced a Bitcoin ETP in Europe. The launch builds on the success of its US-listed spot Bitcoin ETF. The new product will trade under IB1T on Xetra and Euronext Paris. It will also be listed as BTCN on Euronext Amsterdam. The launch follows the success of BlackRock’s U.S.-listed iShares Bitcoin Trust (IBIT), which has secured large assets since its creation.

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JUST IN: $11.5 trillion Blackrock is launching a #Bitcoin ETP in Europe 🇪🇺 pic.twitter.com/dZ8z3N3tGv

— Bitcoin Magazine (@BitcoinMagazine) March 25, 2025

BlackRock has put in place a temporary fee waiver of 10 basis points, meaning that the expense ratio will be cut to 0.15% through the end of the year to attract investors. Once the waiver expires, BlackRock will raise the fee to 0.25%, aligning it with CoinShares’ physical Bitcoin ETP, which is one of the largest in Europe. The new product provides European investors with exposure to Bitcoin without requiring them to hold or trade the cryptocurrency directly.

The decision by BlackRock to launch this product in Europe is in line with the increase in interest from institutional and retail investors in cryptocurrency investments. BlackRock’s head of iShares Product for Europe and the Middle East, Manuela Sperandeo, said there is growing market momentum as professional investors increase their participation and retail demand is rising.

Europe’s Crypto ETP Market and Competition

Crypto ETPs have existed in Europe for years, but the market remains tiny compared to the U.S. There are currently over 160 ETPs in the European market related to crypto, but the total size is nowhere near the rapidly growing U.S. market. In comparison, New Spot Bitcoin ETFs in the U.S., only a few months old, control around 91% of the world market share. The analysts attribute the dominance to cheaper fees, more favorable regulation, and greater liquidity.

BlackRock’s entry into the European market may intensify competition by adding another option with a relatively low expense ratio. The company has the reputation and experience to manage assets, which could draw major interest from institutional and retail investors to its Bitcoin ETP.

In addition, given that Coinbase is the custodian for the Bitcoin backing the product, investors are assured that the custodian will keep the assets secure. Coinbase also serves as the custodian for IBIT, BlackRock’s U.S.-listed Bitcoin ETF, reinforcing continuity across both markets.

The European market for crypto-related financial products is well established. However, it has struggled to scale up and match the success of its U.S. counterpart. European investors are generally more risk-averse than Asian or American investors. This has restricted the kind of rapid expansion seen in the United States, where cryptocurrency investments have gained more traction.

How BlackRock’s Bitcoin ETP Could Affect Investors

BlackRock launched its Bitcoin ETP for institutional investors and informed retail participants. The product offers a regulated way to gain Bitcoin exposure. It is issued through a Swiss special purpose vehicle, benefiting from tax exemptions. This includes no Swiss stamp duty on purchases and sales. Investors looking for efficiency in their cryptocurrency investment might find this structure appealing.

Moreover, the structure of ETP’s fee makes it competitive in the European market, taking into account the temporary waiver period. With lower costs, more investors could consider Bitcoin as part of their portfolios. Furthermore, the presence of BlackRock in the European market might prompt other asset managers to bring new crypto-related financial instruments to investors.

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