BlackRock's new European Bitcoin Exchange Trade Product (ETP) is a key step in the institutional adoption of Bitcoin in Europe, although analysts expect lower inflows than their US counterparts.
iShares Bitcoin ETP, managed by the world's largest asset manager, began trading on March 25th at Xetra, Euronext Amsterdam and Euronext Paris.
Bitfinex analysts said that while the launch has taken an important step towards bringing exposure to Bitcoin (BTC) to European investors, it is unlikely that the product will coincide with the success of the US-based Bitcoin Trust Trade-Traded Fund (ETF), which saw strong demand from institutional and retail investors.
Sishares Bitcoin ETP list. sauce: Black Rock
“The US spot Bitcoin ETF has benefited from the growing demand for institutions, deep capital markets and the participation of key retail investors,” a Bitfinex analyst told Cointelegraph, adding:
“The presence of BlackRock Bitcoin ETP in Europe still represents progress in terms of mainstream adoption, and institutional interest may increase over time as regulatory clarity improves.”
They added that while the European Bitcoin ETP market could develop at a slower pace, it remains an important part of Bitcoin's global adoption story.
Overseeing over $11.6 trillion in managed assets, BlackRock will encourage wider adoption of Bitcoin investment products in Europe, opening up new pathways for facility capital to enter the crypto market.
Bitcoin ETF and institutional holder growth. sauce: Vetle Lunde
In the US, institutional adoption of Bitcoin ETFs surged to over 27% in the second quarter of 2024, when more than 262 companies invested in Bitcoin ETFs, Cointelegraph reported on August 16.
Related: BlackRock will increase Michael Saylor's strategy stake to 5%
BlackRock's global reputation could build momentum for adoption of Bitcoin ETP in Europe
According to Iliya Kalchev, a temporary analyst at Digital Asset Investment Platform Nexo, BlackRock's global reputation and expertise could “gradually build” the momentum of Bitcoin ETP in Europe.
“A modest influx should not be interpreted as a function of structural differences in the market, not as a failure,” Karchev told Cointelegraph.
“Long-term success in Europe can depend on the flow of a week and on consistent access, education and infrastructure.
BlackRock's European Fund may not replicate the explosive growth of US Bitcoin ETFs, but this should be “see in context” rather than “context,” given the limited liquidity of smaller European markets.
Related: Michael Saylor's strategy surpasses 500,000 bitcoins with latest purchases
Bitcoin ETF dashboard. sauce: Sand Dunes
BlackRock's US Spot Bitcoin ETF temporarily surpassed $58 billion and is the 31st largest ETF in the world among traditional asset and digital asset funds, as US Bitcoin ETFs surpassed $126 billion in cumulative BTC holdings.
BlackRock ETFs currently account for more than 50.7% of the market share of all Spot US Bitcoin ETFs worth $49 billion as of March 27th. Sand Dunes The data will be displayed.
https://www.youtube.com/watch? v = gnunx0qw3q
magazine: Hiz's Bitcoin odds in June, Sol's $485 million leak, and more: Hodler's Digest, March 2-8
