BlackRock Launches Bitcoin ETP in Europe Amid Regulatory Support

According to BlockBeats, BlackRock, the world's largest asset management firm, has introduced its Bitcoin Exchange Traded Product (ETP) in Europe following its success in the U.S. Bitcoin spot ETF market. The iShares Bitcoin ETP is now listed on Germany's Xetra exchange and France's Euronext Paris under the trading code IB1T, with another version, BTCN, available on Amsterdam's Euronext. To attract early investors, BlackRock is offering a limited-time zero-fee promotion, reducing the ETP fee to 0.15%, compared to the 0.25% fee for similar U.S. products. This makes it one of the most cost-effective Bitcoin ETPs in the European market, likely appealing to both retail and institutional investors seeking low-cost digital asset investments. Bloomberg ETF analyst Eric Balchunas noted that while Europe has been a pioneer in cryptocurrency ETPs, with over 160 digital asset tracking products, its overall market size remains smaller compared to the U.S. Despite this, BlackRock's entry into the European market could significantly boost growth, especially if it replicates the success seen in the U.S., including improved cost efficiency and trading volume. However, not everyone is optimistic about this development. Finbold's editor, Vini Barbosa, expressed concerns about the current demand for Bitcoin, which is largely driven by centralized derivatives like futures contracts and ETFs/ETPs, with BlackRock playing a key role. Barbosa highlighted that on-chain transaction volumes are notably low, while speculative derivative trading volumes continue to rise, which he views as unfavorable for Bitcoin. The introduction of BlackRock's Bitcoin ETP in Europe aligns with the regulatory requirements of the Markets in Crypto-Assets (MiCA) framework, a comprehensive regulatory structure for the cryptocurrency market in Europe. Experts believe that the proactive stance of European financial regulators will create favorable conditions for future cryptocurrency product issuance and trading, aiding long-term market development. BlackRock's ETP could mark a new beginning for the European market. The increasing involvement of institutional investors and the gradual improvement of Europe's crypto asset regulatory environment are expected to be significant drivers for Bitcoin's future growth.