BlackRock is planning to launch a version of its Bitcoin ETF, or Exchange Traded Product (ETP), in Europe.
The launch of such a product in Europe by the world’s largest asset manager would further signal that large financial institutions are becoming comfortable with cryptocurrency markets, and likely help support Bitcoin’s price.
ETPs are a variant of Exchange Traded Funds (ETFs), defined by US regulation as listed products which do not track securities such as stocks but other types of assets.
The planned product will likely be domiciled in Switzerland, a source told Reuters.
In support of this, the news service noted that BlackRock recently established a Zurich-based company named iShares Digital.
BlackRock declined to confirm or deny the report. It also declined to comment on whether the product will be accessible to UK investors.
Last year the Financial Conduct Authority reiterated its prohibition of the marketing of such products to UK retail investors, though providers received the go-ahead to list such products in London in May.
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What’s new?
ETPs are a variant of ETFs, defined by US regulation as listed funds which do not track securities but other types of assets.
BlackRock launched its first such product in the US early last year, the iShares Bitcoin Trust (IBIT). It currently holds nearly $60 billion in investor assets.
That launch came after the firm secured approval from the US Securities and Exchange Commission, who gave the green light to the company and other American asset managers to launch Bitcoin spot ETPs after a long period of deliberation.
There are already Bitcoin ETFs listed in Switzerland and Europe as Exchange Traded Commodities (ETCs). These include the 21Shares Bitcoin ETP, which holds more than €850 million.
The Swiss-listed 21Shares Bitcoin ETP carries ongoing annual charges (or total expense ratio) of 1.49%. By comparison, BlackRock’s US-listed IBIT carries an ongoing fee of just 0.25.%
Europe’s incumbent providers of Bitcoin trackers will therefore soon meet fierce competition, should BlackRock get approval to list a variant of its product on the Swiss exchange.
Robin has more than six years of experience as a financial journalist, most of which were spent at Citywire, and covers the latest developments in the investing, trading and currency transfer space. Outside of work, he enjoys reading literature and philosophy and playing the piano.
You can contact Robin at robin@goodmoneyguide.com
