BlackRock Launches Bitcoin Exchange-Traded Product (ETP) in Europe

BlackRock's new European Bitcoin exchange-traded product (ETP) is a major step for Bitcoin's institutional adoption in Europe

Asset management giant BlackRock has launched its iShares Bitcoin ETP on Xetra, Euronext Amsterdam and Euronext Paris.

Its US-based iShares Bitcoin Trust ETF has seen strong demand from both institutional and retail investors, though analysts at Bitfinex expect lower inflows for the European product as it faces a smaller market and fewer traders.

“The US spot Bitcoin ETFs benefited from pent-up institutional demand, a deep capital market and significant retail investor participation in the build-up to the ETF launches,” Bitfinex analysts told Cointelegraph.

They added that while Europe's Bitcoin ETP market may develop at a slower pace, it remains a key part of Bitcoin’s global adoption story.

“Despite the slower build-up, we expect broader institutional interest in Europe to support the ETPs in the long term. Moreover, with BlackRock's entry, we could see new pathways open for institutional capital to enter the crypto market.”

Institutional adoption of Bitcoin ETFs surged in Q2 2024 as 262 firms invested in Bitcoin ETFs in the quarter, compared to 146 firms in Q1 2024.

"This inflow is a positive sign for the industry, indicating that more institutions are gaining interest in and engaging with the cryptocurrency market," said Konstantin Kladov, Bitfinex's market analyst.

However, Bitfinex analysts noted that the European ETP market may develop at a slower pace due to the smaller market size and fewer traders.

“We expect to see more modest inflows into the ETPs in Europe, and it will be interesting to observe how this new product contributes to broader Bitcoin adoption in the region.”