BlackRock Plans to Launch Bitcoin ETP in Europe
BlackRock, one of the world's leading Bitcoin ETF issuers, is set to expand its offerings by listing a Bitcoin ETP in Europe. Following the successful launch of a BTC ETF in Canada, this new product marks BlackRock's first venture into European markets.
Despite recent volatility in Bitcoin's price post a major surge in November, BlackRock remains steadfast in its confidence in the cryptocurrency. The introduction of this ETP in Europe is anticipated to have a significant impact on the region's markets.
Having garnered praise for its IBIT product, hailed as a groundbreaking exchange launch, BlackRock currently holds 2.7% of the total Bitcoin supply. The decision to introduce a Bitcoin ETP in Europe aligns with the firm's expansion strategy.
In a blog post, Samara Cohen and Jay Jacobs, BlackRock's Chief Investment Officer of ETFs and Index Investments and US Head of Thematic and Active ETFs, highlighted the allure of gaining Bitcoin exposure through the ETP wrapper for investors.
Reports suggest that BlackRock is likely to establish the new ETP in Switzerland, known for its favorable crypto regulations, particularly in Zug's renowned "Crypto Valley."
While Switzerland offers a more conducive regulatory environment compared to the EU, the new ETP will need to adhere to the MICA regulations to operate in the region.
BlackRock's decision to venture into the European market with this ETP signals the executives' unwavering confidence in Bitcoin, despite its price fluctuations in recent months.
With the potential for significant market impact, BlackRock's European ETP strategy is poised to build on the success of its previous offerings like IBIT, which surpassed the assets under management of numerous European ETFs.
Despite market uncertainties, BlackRock's Bitcoin ETP strategy remains resolute, with expectations of substantial trading volumes akin to the Ethereum ETFs' outperformance relative to the underlying asset.
While BlackRock has not publicly announced its marketing plans for the Bitcoin ETP, insider sources suggest a potential launch within a month. The company's formidable capital and market influence position it strongly for success in the rapidly evolving EU markets. This strategic move by BlackRock is poised to make waves and potentially yield significant rewards.