Bitcoin & Traditional Finance : BlackRock’s Bold European Expansion

Traditional finance and bitcoin are continuing to draw closer. After the resounding success of its Bitcoin ETF IBIT in the United States, BlackRock, the world’s largest asset manager, is preparing to take a new step: the launch of a Bitcoin exchange-traded product (ETP) in Europe. This fund, which will be domiciled in Switzerland, reflects the growing desire of financial institutions to establish a lasting presence in the crypto market. While the United States has seen Bitcoin ETFs capture over $57 billion in assets in just a few months, this new product could change the European landscape. Why Switzerland instead of another country? What will be the effects on investors and the institutional adoption of bitcoin in Europe? These are questions that arise as BlackRock accelerates its international offensive.

Europe, a new playground for BlackRock ?

BlackRock, the world’s largest asset manager, is set to launch a Bitcoin exchange-traded product (ETP) in Europe, with a domicile in Switzerland, according to a report published by Bloomberg on February 5. This initiative is part of the continued success of its spectacular Bitcoin ETF IBIT in the United States, which has attracted $57 billion in net assets since its launch in January 2024.

The choice of Switzerland is no coincidence. This country, known for its regulatory framework favorable to digital assets, allows BlackRock to offer European investors a product framed by clear legislation. Unlike the American IBIT ETF, which relies on physical reserves of bitcoin, this European ETP will adopt a different financial structure, offering regulated exposure to bitcoin via a structured product. According to sources cited by Bloomberg, the marketing of the fund could begin as early as this month, confirming BlackRock’s intent to rapidly expand its influence in the European market. This announcement reflects the growing interest of large financial institutions in cryptos and the exponential role bitcoin plays in global investment strategies.

What are the stakes for crypto investment in Europe ?

The success of Bitcoin ETFs in the United States indicates a growing institutional demand for cryptos, a trend that could extend to Europe. In 2024, American Bitcoin ETFs attracted over $35 billion in net investments, representing an average daily inflow of $144 million. This movement, far from being a one-off phenomenon, is expected to intensify in 2025, with projections estimating an additional $48 billion in inflows, according to analysts from Steno Research.

BlackRock’s entry into the European market could represent a major change for the adoption of bitcoin by institutional investors, particularly those seeking diversification and protection against inflation and geopolitical uncertainty. JPMorgan emphasizes that bitcoin is now seen as an indispensable asset for investment managers, due to record flows recorded in the crypto ecosystem. If this dynamic is confirmed in Europe, it could accelerate the recognition of bitcoin as a fully-fledged asset class, which would influence its price and the structure of the crypto market as a whole.

The launch of a Bitcoin ETP in Switzerland by BlackRock fits into a broader trend where financial giants seek to respond to increasing institutional demand. It remains to be seen whether Europe will adopt the same enthusiasm as the United States, or whether regulatory barriers will continue to hinder the expansion of bitcoin investment products on the continent.

With the launch of a Bitcoin ETP in Switzerland, BlackRock takes a new step in the institutional legitimation of bitcoin. Indeed, in the United States, the rapid rise of Bitcoin ETFs has demonstrated a growing appetite among institutional investors, and Europe could follow this trajectory. However, the acceptance of the European market will largely depend on the reactions of regulators and the attitude of large asset managers towards this new investment tool. Between the opportunity for diversification and caution regarding regulatory risks, the future of bitcoin in Europe may well be decided in the coming months.