BlackRock Set To Launch Bitcoin-Linked ETF In Europe Following US Success

In a significant development for the Bitcoin (BTC) market, BlackRock, the world’s largest asset manager, is preparing to introduce an exchange-traded Fund (ETF) directly tied to BTC in Europe. 

This move follows the success of its $58 billion US ETF that tracks the market’s leading cryptocurrency, underscoring BlackRock’s commitment to expanding its footprint in the digital asset space.

BlackRock CEO Advocates BTC’s Value 

According to Bloomberg, the new fund is expected to be domiciled in Switzerland. BlackRock could begin marketing the fund as soon as this month, marking a pivotal moment in the firm’s venture into European cryptocurrency products. 

While ETFs linked to cryptocurrencies have been available on European exchanges for several years, this will be BlackRock’s first crypto-linked ETF outside of North America. As a leader in the issuance of exchange-traded funds, BlackRock manages over $4.4 trillion in assets across various products. 

The firm has emerged as a prominent supporter of the digital asset class, with CEO Larry Fink recently highlighting Bitcoin’s potential as a hedge against currency debasement during the World Economic Forum (WEF) in Davos.

The launch of several US ETFs tied to Bitcoin last year ignited substantial demand for the asset class, leading to an influx of $116 billion across 12 funds to date, according to Bloomberg data. 

BlackRock’s iShares Bitcoin Trust (ticker IBIT) has notably set industry records, boasting the highest-performing debut of any Exchange-Traded Fund in history.

Growing Appeal Of Bitcoin ETFs

The cryptocurrency market has experienced a significant rally since the election of US President Donald Trump, with Bitcoin reaching a record high of $109,241 in January. 

The increasing interest from financial institutions is fueled by Trump’s vocal support for the industry and the promise of forthcoming regulations that could provide clearer guidelines for firms navigating the crypto landscape.

New regulations for cryptocurrencies also went into effect in the European Union (EU) in late December 2024, further encouraging institutional participation.

Despite the competitive landscape, with over 160 cryptocurrency ETPs currently available in Europe tracking Bitcoin, Ethereum (ETH), and other tokens, the overall market size of $17.3 billion remains modest compared to the robust US market.

In a recent blog post, BlackRock executives Samara Cohen and Jay Jacobs noted that the combination of gaining Bitcoin exposure through the ETF wrapper has proven to be an appealing option for investors. 

At the time of writing, the market’s leading cryptocurrency has fallen to the $96,770 mark, losing the key $100,000 level after experiencing a 7% price drop over the weekly time frame.

Featured image from DALL-E, chart from TradingView.com