LONDON, Feb 5 (Reuters) – BlackRock (BLK.N) is set to launch a Bitcoin exchange-traded product (ETP) in Europe within weeks, according to a source familiar with the matter. This move comes as demand for cryptocurrency exposure continues to rise among both institutional investors and individual consumers.
The source indicated that the product will likely be based in Switzerland. Supporting this, a regulatory filing reviewed by Reuters reveals that the Wall Street firm has established a Zurich-based company, iShares Digital Assets AG, focused on digital assets. BlackRock has declined to officially comment on the matter.
BlackRock was among the initial institutional investors to offer exchange-traded products tracking Bitcoin’s spot price after the U.S. Securities and Exchange Commission (SEC) authorized them in January 2024. The SEC’s decision represented a pivotal moment for the digital asset class, fostering optimism in the crypto sector that cryptocurrencies would gain greater acceptance within mainstream finance.
BlackRock’s primary Bitcoin-linked product, IBIT, has experienced rapid growth, reaching net assets of $57.5 billion as of February 4, according to BlackRock’s website. However, not all international investors can access the current U.S.-based products.
Bloomberg was the first to report BlackRock’s European plans.
While the U.S. crypto industry has reacted positively to the U.S. election and pledges of support for the sector, European crypto businesses are encountering new, stricter regulations. The European Union’s significant crypto regulatory framework, known as the Markets in Crypto-Assets Regulation (MiCA), was introduced in early 2023 and is gradually being implemented.
Reporting by Iain Withers. Additional reporting by Elizabeth Howcroft in Paris. Editing by Mark Potter
