After the massive success of its U.S. bitcoin exchange-traded fund (ETF), BlackRock plans to launch a similar product in the European Union.
As the world’s largest asset manager, BlackRock has attracted more than $57 billion in net assets to its iShares Bitcoin Trust (IBIT) ETF in just over a year. IBIT is the most popular U.S. bitcoin ETF among 12 such products that have emerged since the landmark approval by the U.S. Securities and Exchange Commission.
BlackRock’s European Bitcoin exchange-traded product (ETP) will reportedly be based in Switzerland, marking the company’s first bitcoin fund to be traded outside of North America. Recently, BlackRock launched a new bitcoin ETF on the Canadian stock exchange, Cboe Canada, providing Canadian investors with access to IBIT.
“This is no surprise as BlackRock’s bitcoin ETF, and all the bitcoin ETFs for that matter, were the most successful ETFs in history,” said Joel Hugentobler, Cryptocurrency Analyst at Javelin Strategy & Research. “People are recognizing BlackRock’s ‘stamp of approval’ and also noticing that bitcoin—although at times somewhat correlated to the Nasdaq—strongly outperforms most other assets.”
Institutional Interest
The U.S. approval of bitcoin ETFs, and the subsequent launch of Ethereum ETFs, were key drivers behind a banner year for crypto and digital assets. Bitcoin hit an all-time high, surpassing the $100,000 threshold, largely due to growing interest from many of the world’s largest financial institutions. Institutional interest in other digital assets technologies like tokenization, blockchain, and stablecoins is also surging.
However, the emergence of these powerful technologies and the massive inflows into crypto have sparked calls for regulation of the nascent industry. To that end, the EU has established its Markets in Crypto-Assets (MiCA) regulations. The framework outlines guidelines for issuing and trading digital assets, detailing how companies must authorize and supervise transactions, as well as provide disclosures.
An Attractive Region
It has been widely speculated that a transparent legal framework for digital asset transactions will make the EU an attractive market for crypto organizations. Robinhood recently expanded its services in the region, and the firm believes the EU can rival the U.S. in terms of total addressable crypto market.
According to data from Bloomberg, BlackRock plans to start marketing its new ETP in the EU as soon as this month.
“This will continue to help spread adoption as more people become aware and engaged,” Hugentobler said. “Many people will start with the ETF, then open a self-custody account and hold it themselves—which will further strengthen and grow the network.”
