BlackRock, the world's largest asset manager, is planning to launch a Bitcoin ETP in Europe, linked to its $58 billion U.S. Bitcoin ETF. The fund is expected to be based in Switzerland and could begin marketing as early as this month.
BlackRock's Plans for Bitcoin ETP Launch
According to a Bloomberg report, BlackRock's $58 billion ETF tracking Bitcoin will be available overseas. This decision offers investors convenient Bitcoin exposure via the ETP wrapper, as acknowledged by Samara Cohen, BlackRock’s chief investment officer of ETFs and index investments, and Jay Jacobs, U.S. head of thematic and active ETFs, in a recent blog post.
BlackRock’s Role in Global Finance
BlackRock leads the ETF market with over $4.4 trillion in assets. The new fund would be BlackRock’s first crypto-linked ETP outside of North America. At the World Economic Forum in Davos, CEO Larry Fink highlighted Bitcoin's potential as a hedge against currency devaluation.
Competition in the European Crypto ETP Market
Despite the competitive European crypto ETP market with over 160 products tracking Bitcoin, Ether, and other tokens, its $17.3 billion size is much smaller than the U.S. market. Support for cryptocurrencies from Donald Trump and new EU regulations may encourage more financial institutions to enter the crypto space.
BlackRock's planned Bitcoin ETP launch signifies a major development for the European crypto market, potentially attracting more financial institutions seeking new investment avenues.
