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BlackRock is set to introduce an exchange-traded product (ETP) linked to Bitcoin in Europe.
Managing over $4.4 trillion in ETFs globally, the world's largest asset manager has already amassed $58 billion in assets through its US Bitcoin ETF. Its new European fund is reported to be domiciled in Switzerland with BlackRock expected to market the product this month.
Speaking at the World Economic Forum in Davos last month, CEO Larry Fink underscored Bitcoin’s potential as a hedge against currency debasement, reinforcing the asset’s appeal as an alternative store of value.
More than 160 products that track the price of Bitcoin, Ethereum and other cryptocurrencies are already available in Europe but its $17.3 billion value is just a fraction of the US' $116.4 billion Bitcoin ETF market.
The move comes as BlackRock expands its products beyond US borders. Last month, BlackRock introduced its iShares Bitcoin ETF to the Canadian market by listing the product on Cboe Canada.
Trading under the symbols IBIT and IBIT.U for U.S. dollar-denominated units, the iShares Bitcoin ETF has the same offering as its US counterpart in giving investors exposure to Bitcoin directly within their brokerage accounts.
The iShares Bitcoin ETF reflects the price performance of Bitcoin, minus the fund’s expenses and liabilities, by allocating nearly all of its assets to the iShares Bitcoin Trust ETF (U.S. IBIT).
Blockhead
Europe is becoming a hotbed for crypto activity. Just last week, crypto exchanges OKX, Crypto.com, and Bitpanda received full Markets in Crypto Assets (MiCA) licenses.
Bitpanda received its license from the German Federal Financial Supervisory Authority (BaFin) while OKX and Crypto.com received theirs in Malta.
Entities operating within the EU’s crypto market must comply with MiCA's rules governing transparency, disclosure, and governance. This includes stricter anti-money laundering protocols and requirements for stablecoin issuers to hold sufficient reserves to safeguard consumers.
Blockhead
The MiCA framework, introduced by the European Union, aims to establish a comprehensive regulatory framework for digital assets, ensuring consumer protection, transparency, and market integrity.
