Implications of BlackRock’s iShares Bitcoin ETP in Europe

BlackRock, the world’s largest asset manager, has launched its first Bitcoin Exchange-Traded Product (ETP) in Europe on March 25, 2025. The iShares Bitcoin ETP is now trading on major European exchanges, including Xetra in Germany, Euronext Paris in France, and Euronext Amsterdam in the Netherlands. It is listed under the ticker IB1T on Xetra and Euronext Paris, and BTCN on Euronext Amsterdam. This move follows the success of BlackRock’s U.S.-based iShares Bitcoin Trust (IBIT), which has amassed over $50 billion in assets since its launch in January 2024.

The European ETP is domiciled in Switzerland and is physically backed by Bitcoin, with Coinbase serving as the custodian and Bank of New York Mellon as the administrator. It offers a temporary fee waiver of 10 basis points, reducing the expense ratio to 0.15% until December 31, 2025, after which it will rise to 0.25%. This launch taps into growing demand for cryptocurrency exposure in Europe, where the ETP market, though established, remains smaller than the U.S., with total assets around $13.6 billion compared to over $116 billion in U.S. Bitcoin ETFs.

BlackRock’s entry into the European crypto market builds on its earlier success in North America and reflects a broader trend of institutional adoption of Bitcoin, especially following the U.S. Securities and Exchange Commission’s approval of spot Bitcoin ETFs last year. The firm’s expansion comes amid record financial performance, with its assets under management reaching $11.6 trillion in Q4 2024.  BlackRock’s entry further validates Bitcoin as a credible asset class. As the world’s largest asset manager, its involvement signals to traditional investors—pensions, endowments, and retail clients—that cryptocurrencies are becoming a staple in diversified portfolios. The ETP structure allows European investors to gain Bitcoin exposure through regulated exchanges without needing to manage private keys or navigate crypto exchanges, lowering the barrier to entry and potentially accelerating retail and institutional adoption.

The iShares Bitcoin ETP could increase Bitcoin’s liquidity in Europe, where crypto ETPs have lagged behind the U.S. With BlackRock’s scale and marketing power, this product might attract significant inflows, mirroring the $50 billion success of its U.S. counterpart, IBIT. Increased demand via the ETP could exert upward pressure on Bitcoin’s price, especially if it draws in new capital from conservative investors. However, this depends on market sentiment and broader economic conditions, such as interest rates or inflation trends.

This move intensifies competition with existing European providers like 21Shares and CoinShares, whose ETPs hold a combined $13.6 billion in assets. BlackRock’s lower fees (0.15% initially) could spark a fee war, benefiting investors but squeezing smaller players. BlackRock’s involvement might push European regulators to clarify or harmonize crypto rules, especially in the EU where the Markets in Crypto-Assets (MiCA) framework is still rolling out. Switzerland’s role as the ETP’s domicile highlights its crypto-friendly stance, potentially influencing other jurisdictions.

The success of U.S. spot Bitcoin ETFs, followed by BlackRock’s European expansion, could encourage regulators elsewhere (e.g., UK, Asia) to greenlight similar products, creating a global ripple effect. With inflation concerns lingering and traditional assets like bonds underperforming in some markets, Bitcoin’s appeal as a “digital gold” could grow. BlackRock’s timing suggests it’s positioning to capture this shift in investor preference. For European investors, a Bitcoin ETP offers another way to diversify away from euro-denominated assets, especially as geopolitical tensions and energy crises continue to challenge the region’s economy. Bitcoin’s notorious price swings could deter conservative investors or lead to outflows during downturns, testing BlackRock’s ability to manage expectations.

While Switzerland is crypto-friendly, cross-border sales in the EU might face hurdles if regulators view the ETP as a test case for MiCA compliance. Relying on Coinbase as custodian introduces counterparty risk, especially given past crypto exchange failures like FTX. Any security breach could undermine trust in the iShares Bitcoin ETP product. BlackRock’s Bitcoin ETP launch in Europe is a pivotal step toward integrating crypto into traditional finance, likely boosting adoption and liquidity while challenging regulators and competitors. However, its success hinges on market conditions, investor appetite, and BlackRock’s ability to navigate crypto’s inherent risks.