BlackRock has launched its iShares Bitcoin exchange-traded product (ETP) in Europe, marking a major milestone for Bitcoin’s institutional adoption in the region. The product began trading on March 25 on major European exchanges such as Xetra, Euronext Amsterdam, and Euronext Paris. However, analysts suggest that the demand for this ETP in Europe may be slower compared to the U.S. market, where BlackRock’s iShares Bitcoin Trust ETF has seen significant success.
Modest Inflows Compared to the U.S. Market
BlackRock’s U.S. Bitcoin ETF has captured more than 50% of the market share for spot Bitcoin ETFs, with assets valued at $49 billion as of March 27, 2025. While this performance highlights strong institutional demand and retail investor participation, analysts at Bitfinex have pointed out that the European market has not yet mirrored this trend. They believe that despite this slower start, BlackRock’s move into Europe is an important step for Bitcoin’s mainstream adoption.
Structural Differences in the European Market
Iliya Kalchev, an analyst at Nexo, believes that the smaller initial inflows in Europe should not be viewed as a failure. He attributes this to structural market differences, noting that the long-term success of Bitcoin products in Europe will rely more on factors such as infrastructure, education, and clearer regulatory frameworks. Kalchev emphasizes that BlackRock’s established reputation will help build momentum, even if early demand is modest.
Long-Term Potential in Europe
Despite the slow start, the launch of BlackRock’s Bitcoin ETP in Europe is seen as a crucial step in advancing Bitcoin’s global adoption. With over $11.6 trillion in assets under management, BlackRock could pave the way for more institutional investors to explore Bitcoin. As the regulatory landscape around cryptocurrencies evolves in Europe, analysts expect institutional participation to increase.
Future Outlook
While Bitcoin ETFs in the U.S. have experienced rapid growth, surpassing $126 billion in cumulative holdings by January 2025, European Bitcoin ETFs are expected to develop more slowly. BlackRock’s Bitcoin ETP’s success in Europe will depend on its ability to adapt to the region’s unique characteristics and infrastructure. Despite the challenges, analysts are optimistic about Bitcoin’s long-term potential in Europe as regulatory clarity increases.
In conclusion, while the initial response to BlackRock’s Bitcoin ETP in Europe has been modest, the product’s launch is a significant step for Bitcoin’s institutional adoption on a global scale.
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