Will BlackRock launch its first BTC ETP in the European market?

Source: cryptoslate

Translation: Blockchain Knight

According to Bloomberg News on February 5, BlackRock is preparing to launch a BTC-linked exchange-traded product (ETP) in Europe.

Sources familiar with the matter revealed that the fund is expected to be registered in Switzerland, and BlackRock could begin selling the product as early as this month.

Bloomberg ETF analyst James Seyffart said BlackRock may launch the new ETP similarly to how it did in Canada, where the ETP serves as a wrapper for BlackRock's spot BTC ETF IBIT in the U.S.

However, Seyffart noted that the chances of success for this move in Europe are very low.

Seyffart emphasized that BlackRock’s BTC ETP charges 25 basis points (bps) in the U.S. and 32 bps in Canada.

Notably, BTC exposure is already available in Europe through funds charging 25 basis points. Eric Balchunas also expressed interest in learning about the fees BlackRock will charge in Europe.

Balchunas explained that in terms of cost and liquidity, the U.S. is typically best-in-class compared to the rest of the world.

Balchunas added: "Regardless of the approach, it signals commitment from the world’s largest asset manager, given its significant overseas operations."

The European crypto asset ETP market includes over 160 products tracking BTC, Ethereum (ETH), and other digital assets. The market has a cumulative value of $17.3 billion.

Balchunas stressed that the European crypto ETF market is "almost off the leaderboard," as U.S. spot BTC ETFs account for 91% of the global share.

Balchunas believes BlackRock has an opportunity to bring the 'American Terrordome' to Europe and achieve success.

Yet, Balchunas pointed out that unlike investors in the U.S. and Asia, European investors show less interest in high-risk investment products.

According to data from Farside Investors, as of February 4, IBIT recorded $40.7 billion in net inflows.

Its inflows are more than three times those of the second-largest spot BTC ETF, Fidelity's FBTC.