BlackRock continues to expand its crypto footprint and is launching an exchange-traded Bitcoin product (ETP) domiciled in Switzerland. With this move, the world’s largest asset manager is setting its sights on the European market.
Following the highly successful launch of the now $48 billion iShares Bitcoin Trust (IBIT) in the U.S., BlackRock is entering the European market. Switzerland, with its established crypto infrastructure and regulatory clarity, appears to offer the ideal conditions for this move. According to Bloomberg, the ETP will be issued by a special purpose vehicle based in Switzerland, with Coinbase handling custody and Flow Traders executing trades.
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BlackRock bets on Switzerland as a crypto hub
The choice of Switzerland as the location for the Bitcoin ETP is no coincidence. The country has established itself as a leading crypto hub, offering regulated financial products that facilitate institutional access to digital assets. According to Dirk Klee, CEO of BlackRock Switzerland, the Swiss team played a pivotal role in developing the new financial product. Finews quotes the country head as follows:
“There’s a lot of Switzerland in the iShares Bitcoin ETP. We at BlackRock Switzerland were heavily involved in its development. [...] We believe that ETPs can play an important role in building a bridge between crypto and the traditional financial world – thanks to their efficiency and ease of use.” – Dirk Klee, CEO BlackRock Switzerland
Competition in the European market
With the launch of its Bitcoin ETP, BlackRock is entering an already fiercely competitive market. Providers like 21Shares and CoinShares are well established and offer similar products. Nevertheless, BlackRock could quickly gain market share thanks to its strong brand, institutional ties, and extensive experience. The firm is also collaborating closely with SIX Swiss Exchange to list the ETP on a regulated trading venue.
The iShares Bitcoin ETP is listed on Xetra and Euronext Paris under the ticker IB1T and on Euronext Amsterdam under BTCN. According to Bloomberg, the Swiss investment product is available to institutional and well-informed retail investors. BlackRock is waiving fees until the end of the year; thereafter, the Bitcoin ETP will carry an annual fee of 0.25%, in line with its U.S. counterpart, while initially charging 0.15% per annum.
