BlackRock’s new European Bitcoin exchange-traded product (ETP) is a major step for Bitcoin’s institutional adoption in Europe, though analysts expect lower inflows than its US counterpart.
The iShares Bitcoin ETP, managed by the world’s largest asset manager, began trading on March 25 on Xetra, Euronext Amsterdam and Euronext Paris.
While the launch marks a significant step in bringing Bitcoin (BTC) exposure to European investors, analysts at Bitfinex said the product is unlikely to match the success of the US-based iShares Bitcoin Trust exchange-traded fund (ETF), which has seen strong demand from institutional and retail investors.
SiShares Bitcoin ETP listings. Source: BlackRock
“The US spot Bitcoin ETFs benefited from pent-up institutional demand, a deep capital market and significant retail investor participation,” Bitfinex analysts told Cointelegraph, adding:
“The presence of a BlackRock Bitcoin ETP in Europe still represents progress in terms of mainstream adoption, and as regulatory clarity improves, institutional interest could grow over time.”
They added that although Europe’s Bitcoin ETP market may develop at a slower pace, it remains a key part of Bitcoin’s global adoption story.
BlackRock, which oversees more than $11.6 trillion in assets under management, could encourage broader adoption of Bitcoin investment products in Europe and open new pathways for institutional capital to enter the crypto market.
Bitcoin ETF, institutional holder growth. Source: Vetle Lunde
Over in the US, institutional adoption of Bitcoin ETFs surged to over 27% during the second quarter of 2024 when over 262 firms invested in Bitcoin ETFs, Cointelegraph reported on Aug. 16.
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BlackRock’s global reputation may build momentum for European Bitcoin ETP adoption
BlackRock’s global reputation and expertise may “gradually build momentum” for European Bitcoin ETPs, according to Iliya Kalchev, dispatch analyst at digital asset investment platform Nexo.
“Modest inflows shouldn’t be interpreted as a failure but rather as a function of structural differences in the market,” Kalchev told Cointelegraph, adding:
“Long-term success in Europe may depend less on first-week flows and more on consistent access, education and infrastructure — elements BlackRock is well-positioned to deliver.”
While BlackRock’s European fund may not replicate the explosive growth of its US Bitcoin ETF, this should be “seen in context, not as a red flag,” considering the smaller European market’s limited liquidity.
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Bitcoin ETF dashboard. Source: Dune
BlackRock’s US spot Bitcoin ETF briefly surpassed $58 billion, making it the world’s 31st-largest ETF among both traditional and digital asset funds as US Bitcoin ETFs surpassed $126 billion in cumulative BTC holdings, Cointelegraph reported on Jan. 31.
BlackRock’s ETF currently accounts for over 50.7% of the market share of all spot US Bitcoin ETFs, valued at $49 billion as of March 27, Dune data shows.
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