Blackrock heralds new age: ISHARES BITCOIN ETP offers investment option in Bitcoin without a direct purchase

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Ishares Bitcoin ETP: Investing in Bitcoin without direct purchase

Blackrock presented the ISHARES Bitcoin ETP (Exchange Traded Product) on Tuesday, which offers the opportunity to invest in Bitcoin without purchasing cryptocurrency directly. This new product is aimed at both institutional and informed private investors and is issued by a purpose company based in Switzerland. Coinbase takes over the custody of the stored bitcoins, whereby the bitcoins being transferred from the trading wallet into a safe offline wallet from the trading wallet every day. The ETP is traded on the Xetra, Euronext Amsterdam and Euronext Paris.

Market development and regulation in the USA and Europe

In the USA, Blackrock was one of the first providers in the USA to introduce a stock market -traded fund (ETF) on Bitcoin. These products were approved by the stock market supervision after a long exam in early January 2024. Since then, a total of $ 99 billion has flowed in Bitcoin ETFs, of which 50 billion were invested in black rock products alone.

So far, Bitcoin ETFs have been banned in Europe for regulatory reasons. Instead, ETPs have been available here for several years that are linked to cryptocurrencies. These products are usually 1: 1 with real bitcoins, which are safely kept by an independent deposit.

Current demand and market volume

The demand for crypto ETPs has so far been low in Europe. According to Bloomberg, the market volume is currently $ 13.6 billion. A total of 17 providers offer 130 crypto ETPs, including products that cover lesser-known cryptocurrencies. Most of existing Bitcoin ETPs come from companies that specialize in cryptocurrencies, such as coin shares, bitwise and 21shares. Another product in the German market comes from DWS, which has launched the Xtrackers Galaxy Physical Bitcoin etc securities in cooperation with Galaxy Digital.

pricing and professionalization of the market

With the introduction of the ISHARE Bitcoin ETP, Blackrock enters a new segment of the market and could thus contribute to professionalization in the industry. Dolf Diederichsen, CEO near Hyphe, a FinTech that supports banks in the integration of digital assets, states that investors are now considering ETPS as a convenient way to invest in cryptocurrencies. The professionalization of the crypto sector enables many structures to now compete with traditional financial institutions on a risk engine.

An additional incentive for investors is the reduced fee structure of the new product. Blackrock attracts with a combat price by determining the total cost rate by a fee of 10 basis points to only 0.15 percent by the end of the year. For comparison: Coinshares and Bitwise charge fees of 0.2 or 0.25 percent, while DWS even demands 0.35 percent.

FAZIT

The Ishares Bitcoin ETP from Blackrock represents a significant step in the development of the crypto market by offering a safer and regulated opportunity to invest in Bitcoin. With a transparent structure and attractive fees, this product could address both institutional and private investors and further promote the trend towards professionalization in the field of digital assets.

Note: All content is only used for information and do not represent securities analysis, recommendation or investment advice. It is recommended to carefully check the risk profile of each system.