BlackRock Inc. (BLK), the world's largest ETF issuer, may issue a bitcoin exchange-traded product (ETP) in Europe as soon as this month, according to Bloomberg News.
The ETP would follow the success of its $59.3 billion iShares Bitcoin Trust (IBIT), which launched last year in the U.S. and has pulled in $37.5 billion. The new fund would be "tied directly to Bitcoin in Europe" the Bloomberg story stated. It will likely be domiciled in Switzerland and marketing could begin as early as this month, the story said.
IBIT was among the first 10 new spot bitcoin ETFs to launch after the Securities and Exchange Commission approved them last January. They were followed by spot Ethereum ETFs in July. New York-based BlackRock's iShares unit manages $3.04 trillion in 438 U.S. exchange-traded funds, and manages dozens in Europe as well.
In the U.S., spot bitcoin ETFs have been pulling in investor cash since bitcoin's price dropped by around $10,000 from an all-time high in recent weeks to around $97,000, while world markets absorbed news of President Trump's announcement—and then pause—of 25% tariffs on Canadian and Mexican imports. Investors are piling into bitcoin funds as the Trump administration continues promoting cryptocurrencies and as the funds transition in their functions as hedges against inflation.
BlackRock's European plan follows that of DWS, which became the latest "traditional" asset manager to enter the crypto ETP market, also joining WisdomTree, Fidelity and Invesco. DWS manages $20.8 billion in 42 U.S. ETFs.
CoinShares, WisdomTree and Invesco announced additional fee cuts in January with the price war showing no signs of let up. Elsewhere, the European Securities and Markets Authority (EMSA) issued a warning on crypto assets following another spike in the price of bitcoin, stating that the uptick in price “confirms their highly volatile nature.”
Speaking at ETF Stream’s ETF Ecosystem Unwrapped 2024, Michael Howell, managing director of CrossBorder Capital, expects bitcoin to hit $250,000 over the next three to five years as faith dwindles in the US Treasury market.
The SEC’s approval of spot bitcoin ETF in the US triggered a series of fee cuts for crypto ETPs in Europe.
This article was originally published in etf.com sister publication ETF Stream.
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