MiCA Legislation Paves the Way for New BlackRock ETP Launch
BlackRock, which has more than $10 trillion in assets, may launch the Switzerland-based fund this month. In this direction, MiCA legislation will boost the ETP in Europe. This action demonstrates how institutions are becoming more interested in digital assets.
Although the AUM has not provided an official confirmation, market watchers cite the performance of its iShares Bitcoin ETF (IBIT), which is listed in the United States, as a driving force. In the first year of its launch, IBIT accumulated assets of around $60 billion.
Will BlackRock’s Low Fees Disrupt Europe’s Crypto ETP Industry?
The introduction of crypto-backed securities by asset managers like Kraken and Bitstamp throughout the region represents a larger trend that includes BlackRock‘s entry into the European market. In 2015, Europe introduced its first regulated Bitcoin-backed ETP, continuing its long-standing love of cryptocurrency investment products. The market has grown to more than 100 products since then, encompassing about 40 distinct underlying cryptocurrency assets. Similar to fee wars in the US, BlackRock’s involvement may lead to more competition.
The fee structure of BlackRock’s new ETP is critical to its success, according to experts. BlackRock’s U.S. crypto ETF charges only 25 basis points, whereas European crypto ETP fees can reach 2.5%. Bloomberg analyst Eric Balchunas stressed that costs will be a significant factor in success.
BlackRock’s Bitcoin Strategy Expands to Sovereign Wealth Funds
With over 160 offerings valued at over $17 billion, Europe offers a fertile ground for crypto-linked products, even though U.S.-based Bitcoin ETFs hold a 91% market share worldwide. With total trade volumes exceeding €50 billion in 2024 alone, Bitcoin’s popularity in comparison to fiat currencies, such as the euro, is only expected to increase.
BlackRock, a well-known provider of Bitcoin ETFs, is currently preparing to include cryptocurrencies in its holdings in sovereign wealth funds. Citing concerns about inflation and the devaluation of fiat currencies, BlackRock CEO Larry Fink acknowledged that his company is collaborating with SWFs to transfer funds to Bitcoin. These investments might bring the price of Bitcoin above $700,000, according to Fink.
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