The world's largest asset manager, BlackRock, is preparing to launch an exchange-traded bitcoin product (ETF) in Europe. Based in Switzerland, the fund aims to provide an alternative to the multi-billion-dollar Bitcoin ETF in the United States.
Exchange-traded funds (ETFs) are investment products that track the performance of a particular asset or a basket of assets. Bitcoin ETFs allow investors to gain exposure to the cryptocurrency within a regulated and familiar banking framework. Following their launch in the US in January 2024, Bitcoin ETFs saw immediate success. BlackRock's "IBIT" now manages over $58 billion, and the asset manager is looking to replicate this success in Europe. According to Bloomberg, the Bitcoin ETF will be domiciled in Switzerland.
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Competition in Europe intensifies
Europe has had bitcoin and other cryptocurrency investment products for several years. Among the most successful issuers are Swiss "unicorn" 21Shares and UK-based CoinShares. Collectively, around 250 bitcoin and alternative crypto ETFs manage approximately $18 billion in assets, up from less than $10 billion a year ago.
AuM of all crypto ETFs in Europe in millions of USD / Source: etfbook
These issuers have built up their assets over several years. For example, the 21Shares Bitcoin ETP has been tradable since 2019, with additional cryptocurrency products following shortly thereafter. In contrast, US Bitcoin ETFs surpassed the entire market in just a few days. Each of the three largest Bitcoin products in the United States manages more assets individually than the entirety of crypto ETFs in Europe. Despite this, BlackRock appears to see a significant opportunity.
Potential launch in February
Bloomberg, citing an insider source, reports that BlackRock could begin marketing its bitcoin ETF in Europe as early as this month. The Swiss media office of the world's largest asset manager responded to an inquiry from CVJ.CH, saying that BlackRock continues to monitor client demand and is committed to providing solutions that meet their investment needs.
Nevertheless, BlackRock takes the crypto industry seriously. CEO Larry Fink frequently speaks positively about bitcoin and tokenization in media appearances. He views bitcoin as a viable alternative to traditional "safe haven assets" such as gold. Furthermore, BlackRock continues to push forward with smart contract-based financial products, recognizing the significant advantages offered by blockchain technology.
"I truly believe that we are moving towards [tokenization]. We have the technology for tokenization today. When you have a tokenized security [...] the moment you buy or sell an instrument, you know it is recorded on a ledger that everyone has created together. [...] A tokenized system eliminates all corruption." – Larry Fink, BlackRock CEO
