BlackRock Launches Bitcoin ETP in Europe

BlackRock, the world’s largest asset manager, has made a significant move into the European cryptocurrency market with the launch of its iShares Bitcoin ETP (IB1T). This new product, which began trading on March 25, 2025, on Xetra, Euronext Amsterdam, and Euronext Paris, marks BlackRock's first foray into crypto-backed ETPs outside North America. The ETP is backed by Bitcoin held in cold storage by coinbase Custody International Ltd., providing investors with a secure and trusted investment vehicle.

The launch of the iShares Bitcoin ETP in Europe comes at a time when institutional interest in Bitcoin is surging. In the U.S., spot Bitcoin ETFs have seen strong demand, with BlackRock's iShares Bitcoin Trust ETF (IBIT) leading the charge with $50.7 billion in assets under management (AUM). This success has been driven by pent-up institutional demand, a deep capital market, and significant retail investor participation. However, the European market presents a different landscape, with the largest crypto ETP housing just $1.3 billion in AUM.



Analysts at Bitfinex suggest that the European product is unlikely to match the success of its U.S. counterpart due to several factors. The U.S. spot Bitcoin ETFs benefited from pent-up institutional demand, a deep capital market, and significant retail investor participation. In contrast, Europe's Bitcoin ETP market is substantially smaller, with the largest product housing just $1.3 billion in AUM. This difference in market size and liquidity could influence the adoption rate in Europe.

Additionally, regulatory clarity and institutional interest are expected to grow over time in Europe, which could gradually build momentum for Bitcoin ETP adoption. BlackRock's global reputation and expertise may also play a role in encouraging broader adoption of Bitcoin investment products in Europe. As Jane Sloan, EMEA head of global product solutions at blackrock, noted, "With 25 million cryptocurrency investors across Europe, we believe ETPs have an important role to play to build a bridge between crypto and traditional finance through their efficiency and convenience."

Despite the modest inflows expected in Europe, the launch of BlackRock's Bitcoin ETP is a significant step in the institutional adoption of Bitcoin. The product offers a more accessible way for institutional clients to invest in the cryptocurrency, providing a regulated and convenient investment vehicle. This move could encourage broader adoption of Bitcoin investment products in Europe and open new pathways for institutional capital to enter the crypto market.



However, BlackRock's entry into Europe's cryptocurrency ETP market presents several potential regulatory and market challenges that could impact its performance. One of the primary regulatory challenges is the varying levels of regulatory clarity and acceptance of cryptocurrencies across different European countries. While some countries may have more favorable regulatory environments, others might impose stricter regulations or even restrictions on crypto products. This regulatory uncertainty could hinder the widespread adoption of BlackRock's ETP and limit its market reach.

Furthermore, the performance of BlackRock's European Bitcoin ETP could be influenced by market sentiment and competition. The presence of other established players like CoinShares and 21Shares, which have led the way in Europe's crypto ETP market, could pose a competitive challenge. These firms have already built a significant presence and may have a head start in terms of market share and investor trust. BlackRock will need to differentiate its product and offer compelling reasons for investors to choose its ETP over existing options.

Another potential challenge is the volatility of the cryptocurrency market. Bitcoin's price movements can be highly unpredictable, and significant price fluctuations could impact the performance of BlackRock's ETP. Investors may be cautious about entering the market due to the inherent risks associated with cryptocurrencies, which could affect the inflows into BlackRock's ETP.

In summary, while BlackRock's European Bitcoin ETP marks a significant step in mainstream adoption, the adoption rate in Europe is expected to be influenced by factors such as market size, liquidity, regulatory clarity, and institutional interest, which may differ from the dynamics seen in the U.S. market. Despite these challenges, BlackRock's global reputation and expertise may help mitigate some of these risks and build momentum for its product over time.

Ask Aime: What is the iShares Bitcoin ETP, and how will it impact European markets?