BlackRock Bitcoin ETP could drive institutional adoption in Europe

While European Bitcoin ETP growth may be slower, BlackRock’s presence could pave the way for institutional capital to enter the market over time.

BlackRock’s launch of a European Bitcoin ETP is a significant moment for the cryptocurrency’s global adoption, despite analysts expecting modest inflows.

BlackRock’s launch of its European Bitcoin exchange-traded product (ETP) is considered a major moment in Bitcoin’s global adoption. Analysts, however, expect more modest inflows compared to its US counterpart.

The iShares Bitcoin ETP began trading on 25 March on Xetra, Euronext Amsterdam, and Euronext Paris, allowing European investors to gain exposure to Bitcoin.

Bitfinex analysts noted that the product is unlikely to mirror the success of the US-based iShares Bitcoin Trust exchange-traded fund (ETF). They pointed out that the US ETFs benefited from institutional demand and a larger capital market.

BlackRock’s global reputation and substantial assets under management may drive further interest in Bitcoin investment products across Europe.

Despite expectations of lower inflows, the company’s presence in the market may lead to long-term success. As regulatory clarity improves, more institutional capital may enter the crypto space.

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