BlackRock plans to launch a Bitcoin ETP in Europe
- BlackRock is planning to launch a Bitcoin ETP in Switzerland.
- This move follows the success of BlackRocks US Bitcoin ETF.
- The Bitcoin ETP could boost crypto adoption with the EUs MiCA regulations.
BlackRock Inc., the worlds largest asset manager, is gearing up to launch a Bitcoin Exchange-Traded Product (ETP) in Europe, marking another significant step in the firms expansion into the cryptocurrency market. The new ETP product is set to be registered in Switzerland.
This move follows the resounding success of BlackRocks $58 billion US Bitcoin ETF. The success of BlackRocks US Bitcoin ETF, which by early February 2025 had gathered $57.5 billion in net assets, speaks volumes about the investor appetite for such products.
CEO Larry Finks remarks at the World Economic Forum in Davos highlighted Bitcoins potential as a hedge against currency debasement, suggesting a broader acceptance of cryptocurrencies as an alternative store of value.
This European venture is anticipated to attract both institutional and retail investors looking for exposure to Bitcoin without the complexities of direct cryptocurrency ownership.
Switzerland is becoming a digital asset innovation in Europe
The decision to domicile the ETP in Switzerland was strategic, leveraging the countrys reputation as a hub for digital asset innovation, particularly within its Crypto Valley in Zug.
Switzerlands progressive regulatory framework for cryptocurrencies has made it an attractive location for BlackRock to extend its Bitcoin investment offerings beyond North American borders.
The choice of Switzerland not only aligns with BlackRocks aim to capitalize on crypto-friendly regulations but also positions the firm to lead in the European market.
Notably, the plans to launch an ETP in Europe comes at a time when the European Union is navigating its own regulatory path through the Markets in Crypto-Assets (MiCA) regulation, which was established in 2023.
The MiCA framework aims to ensure consumer protection and market integrity, providing a stable environment for crypto investments.
Despite the European crypto market capitalizing at $17.3 billion far less than the USs $116.4 billion BlackRocks move could significantly boost the sector.
BlackRocks entry into this market underscores the growing institutional acceptance of cryptocurrencies, a trend that has been further propelled by the US Securities and Exchange Commissions approval of Bitcoin ETFs in January 2024.
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