Larry Fink, BlackRock's CEO, has notably shifted from skepticism to full endorsement of Bitcoin, reflecting a significant change in institutional attitudes towards cryptocurrency.

This launch is seen as a validation of Bitcoin, promoting both institutional and retail investment in the asset class, according to Meryem Habibi from Bitpace.

Despite the positive developments, critics argue that Bitcoin's demand is increasingly driven by centralized derivatives rather than organic interest, raising concerns about its long-term viability.

Interestingly, Bitcoin's price reaction has been muted, with BTC down 0.55% in the last 24 hours, trading at approximately $86,601.

A recent study indicated that 75% of professional investors are interested in Bitcoin ETPs within the next two years, underscoring the growing interest in cryptocurrencies.

BlackRock's decision to enter the crypto market was influenced by the evolution of the cryptocurrency space and increasing client interest in Bitcoin.

The ETP features a total expense ratio (TER) of 0.15%, which is set to rise to 0.25% at the end of the year due to the expiration of a fee waiver.

Market participants will closely monitor the demand and performance of the iShares Bitcoin ETP once trading commences, as its success is tied to market stability and regulatory developments.

BlackRock has launched a Bitcoin Exchange-Traded Product (ETP) in Europe, following the success of its US-listed spot Bitcoin ETF, the iShares Bitcoin Trust (IBIT), which boasts $50.6 billion in assets under management.

The new ETP benefits from the EU's Markets in Crypto Assets (MiCA) regulations, which provide a clear framework for launching crypto products and are expected to boost investor demand.

Coinbase Global Inc. will handle the custody of the physical Bitcoin backing the iShares Bitcoin ETP, which is accessible to institutional and informed retail investors.

To attract investors, BlackRock's new Bitcoin ETP will offer a temporary fee discount of 10%, making it more appealing in a competitive market.