BlackRock Expands into Europe with a New Bitcoin ETP

• BlackRock plans to launch a Bitcoin ETP in Europe, expanding beyond its US-listed IBIT.
• The Trump administration aims to regulate stablecoins, focusing on USD-backed assets for stability.
• The SEC is reducing its crypto unit and considering retroactive relief for token offerings.

BlackRock is preparing to introduce a Bitcoin exchange-traded product (ETP) in Europe. The fund will be based in Switzerland and could launch soon. This move follows the success of its US-listed spot Bitcoin ETF, iShares Bitcoin Trust (IBIT). 

BlackRock’s IBIT has grown significantly since its launch in January 2024. The fund now holds approximately $58 billion in Bitcoin. This rapid growth has positioned IBIT as one of the largest Bitcoin ETFs globally.  

The ETF has maintained strong inflows, attracting nearly $934 million in net investments since January 30. On February 4, it recorded $249 million in daily inflows. BlackRock aims to replicate this success in the European market.  

The European crypto ETP market includes over 160 products tracking different digital assets. However, it remains smaller than the US market, which dominates global Bitcoin ETF investments. European investors have historically shown less enthusiasm for high-risk financial products.  

BlackRock initially considered using a wrapper approach to link its European ETP with its US-listed IBIT. However, EU regulators are likely to reject this plan. This means BlackRock must launch a separate European Bitcoin ETF.  

The Trump administration works to establish regulatory standards for US dollar-backed stablecoins. Officials believe stablecoins can boost demand for US Treasurys. They also see stablecoins as a tool to strengthen financial stability.  

The administration wants to bring stablecoin innovation within US borders. The initiative may result in increased regulatory standards for digital asset issuance and management. The initiative aims to establish a stable and regulated framework for the stablecoin market.  

The US Securities and Exchange Commission (SEC) is undertaking changes in its policies to enforce cryptocurrency activities. The agency has reduced its crypto enforcement unit and shifted personnel to different departments. This move follows leadership changes within the SEC.  

The SEC is also considering retroactive relief for token offerings. Regulators aim to clarify past enforcement actions and provide clear guidelines. These changes could reshape the future of digital asset regulation.  

BlackRock’s entry into Europe signals growing institutional interest in Bitcoin. The firm’s success in the US has set the stage for further global expansion. However, regulatory challenges remain a key factor in shaping market developments.  

The Trump administration’s stablecoin regulations could impact the broader crypto industry. Meanwhile, the SEC’s policy changes may influence how companies handle token offerings. These developments highlight the evolving landscape of crypto investments and regulations.

Tags:Bitcoin Bitcoin ETP Blackrock BTC Crypto market cryptocurrency Europe Stablecoins