BlackRock’s new Bitcoin product in Europe seen as major breakthrough for cryptocurrency
BlackRock, the largest asset manager globally, has introduced its inaugural Bitcoin product in Europe, a move that experts predict will serve to legitimize cryptocurrencies in conventional finance. The launch of BlackRock’s “iShares Bitcoin ETP” (exchange-traded products) has been hailed as a significant milestone for the crypto industry, demonstrating the firm’s confidence in Bitcoin as a viable mainstream investment option.
Meryem Habibi, the chief revenue officer at Bitpace, a London-based crypto payment gateway, expressed her enthusiasm, stating that BlackRock’s foray into the European market not only validates the cryptocurrency asset class but also opens the door to increased engagement from both institutional and retail investors. The ETP offers investors the ability to trade Bitcoin without directly owning the digital currency, allowing them to leverage traditional brokerage accounts without the need for a digital wallet or the complexities associated with purchasing Bitcoin directly.
Anthony Yeung, the Chief Compliance Officer of Coincover, highlighted the benefits of ETPs for institutional investors, providing them with exposure to the cryptocurrency market without directly assuming the risks typically associated with native crypto investments. BlackRock’s success with Bitcoin ETPs in the US, where investors have collectively invested $50bn, sets a promising precedent for Europe, likely leading to a surge in institutional investments that could positively impact the price of Bitcoin and contribute to wider acceptance of crypto as an essential asset.
Although Europe initially lagged behind the US in adopting ETPs, the region has made significant progress, propelled in part by the EU’s Markets in Crypto Assets (MiCA) regulation, which simplifies the process of introducing new products. Last year, Europe managed $12 billion in ETP assets under management, marking a substantial increase from 2020 levels. In comparison to the US, Europe boasts a more extensive range of investment options, with 135 ETPs available, three times more than in the US.
BlackRock’s entry into Europe’s burgeoning ETP market has been lauded by James Burnie, a fintech expert at gunnercooke, who views it as a positive step towards integrating traditional finance with digital assets. Burnie noted that as crypto markets become increasingly integrated into the financial landscape, large traditional players like BlackRock entering the industry are becoming more commonplace. Habibi echoed Burnie’s sentiment, emphasizing the trend of merging traditional finance with digital assets, underscoring how crypto is aligning itself more closely with everyday financial activities.
Overall, the introduction of BlackRock’s Bitcoin ETP in Europe marks a significant milestone for the crypto industry, signaling broader acceptance of digital assets in mainstream finance and opening up new avenues for investment opportunities in the region.
