BlackRock has introduced its iShares Bitcoin exchange-traded product (ETP) in Europe, a significant milestone for Bitcoin's institutional acceptance in the region. The ETP started trading on March 25 on prominent European exchanges like Xetra, Euronext Amsterdam, and Euronext Paris. Nonetheless, analysts anticipate lower demand for the ETP in Europe compared to the U.S. market, where BlackRock's iShares Bitcoin Trust ETF has seen substantial investment inflows. In the U.S. market, BlackRock's ETF holds a market share exceeding 50% for spot Bitcoin ETFs, with assets valued at $49 billion as of March 27, 2025.
Although the European launch signifies progress in mainstream Bitcoin adoption, Bitfinex analysts note that U.S. spot Bitcoin ETFs benefited from robust institutional interest and active retail investor involvement, elements that are yet to fully materialize in Europe. Despite this observation, BlackRock's entrance into the European market is considered a pivotal development. Analysts also highlight that BlackRock's presence could encourage other institutions to explore Bitcoin investment options, even though European market growth may take time.
Iliya Kalchev, an analyst at Nexo, suggests that the modest initial interest in Europe is not a setback but attributed to differing market structures. Kalchev stresses that long-term success will depend on factors like infrastructure, education, and regulatory certainty. The reputable image of BlackRock could gradually build momentum, notwithstanding the modest initial inflows.
Even with Europe's slower progression, BlackRock's Bitcoin ETP launch is deemed crucial for global adoption of the asset. The firm, managing assets exceeding $11.6 trillion, may pave the way for more institutional investors to delve into Bitcoin. As regulatory frameworks evolve around cryptocurrencies in Europe, analysts anticipate growing institutional engagement, especially with the emergence of clearer regulations.
While the U.S. market has witnessed rapid expansion, reaching over $126 billion in cumulative Bitcoin ETF holdings by January 2025, the growth of European Bitcoin ETFs is expected to be more gradual. The future success of BlackRock's Bitcoin ETP in Europe will hinge on its adaptability to the unique market characteristics and the supporting infrastructure. Despite challenges, analysts maintain a positive long-term outlook on Bitcoin adoption in Europe.