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BlackRock Inc. BLK has launched a bitcoin exchange-traded product (ETP), iShares Bitcoin, in Europe after the solid performance of its $48 billion U.S. fund that tracks the cryptocurrency.

Details of BlackRock’s Product

BlackRock’s iShares Bitcoin ETP was listed on Tuesday on Xetra and Euronext Paris under the ticker IB1T and on Euronext Amsterdam under the ticker name BTCN. The product was launched with a temporary fee waiver of 10 basis points, lowering its expense ratio to 0.15% until the end of 2025.

The fee waiver makes IB1T one of the cheapest alternatives at launch. In comparison, Europe’s largest crypto ETP—CoinShares International Ltd.’s $1.3 billion physical Bitcoin product—charges a 0.25% fee, which will also be the expense ratio for BlackRock’s IB1T following the expiration of the waiver.

IB1T, accessible to both institutional and informed retail investors, was issued by a special-purpose vehicle registered in Switzerland.

Rationale Behind BLK’s Product Launch

BlackRock’s move aims to capitalize on the rising demand for cryptocurrency exposure in new markets beyond the United States. This aligns with the organic growth strategy of the company to enhance offerings and boost its assets under management.

Manuela Sperandeo, head of Europe & Middle East iShares product at BlackRock, stated, “It reflects what really could be seen as a tipping point in the industry — the combination of established demand from retail investors with more professionals now really getting into the fold.”

Last month, BLK launched a Bitcoin exchange-traded fund in Canada by listing it on Cboe Canada. Likewise, the company collaborated with Partners Group to enhance its retail solutions. In January 2024, the company launched Bitcoin ETFs in the United States, which have been enjoying great success.

BlackRock’s Zacks Rank & Price Performance

Shares of BlackRock have gained 2% compared with the industry’s 2.4% growth in the past six months.

Currently, BLK carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .

Product Expansion Efforts by Other Finance Firms

Earlier this month, SEI Investments Co. SEIC announced the launch of SEI Strategies in collaboration with Capital Group to enhance tax solutions for its clients through model portfolios.

SEI Investments aims to capitalize on the rising demand for model portfolios as investors seek better tax solutions and investment strategies.

Similarly, Robinhood Derivatives, LLC, a wholly-owned subsidiary of Robinhood Markets, Inc. HOOD, launched a prediction markets hub directly within the Robinhood app, allowing customers to trade on the outcomes of several major global events, including the expected upper limit of the Federal Reserve funds rate in May.

The launch of the prediction markets hub aligns with Robinhood’s objective to become a full-service financial firm and compete with dominant derivatives brokers.

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This article originally published on Zacks Investment Research (zacks.com).

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