As interest in Bitcoin continues to grow, more investors are looking for secure, regulated ways to gain exposure—without having to hold the cryptocurrency directly. One of the most popular ways to do this in traditional finance is through an Exchange-Traded Product (ETP). But what exactly is a Bitcoin ETP, and how does it work?
What Is a Bitcoin ETP?
A Bitcoin ETP is a financial instrument that tracks the price of Bitcoin and is traded on traditional stock exchanges, just like a stock or ETF. It allows investors to gain exposure to Bitcoin’s price movements without needing to manage wallets, private keys, or custody themselves. The product is backed by actual Bitcoin held by a custodian, ensuring that each share represents a specific amount of Bitcoin.
Bitcoin ETPs are ideal for institutional and retail investors who want exposure to Bitcoin within a familiar regulatory and investment framework.
How Does BlackRock’s Bitcoin ETP Work?
On March 25, 2025, BlackRock—the world's largest asset manager—launched its first-ever Bitcoin ETP in Europe under the iShares brand. The product trades on European exchanges such as Xetra, Euronext Paris, and Euronext Amsterdam under the tickers IB1T and BTCN.
The ETP is physically backed, meaning each unit corresponds to actual Bitcoin.
Bitcoin holdings are safely stored by Coinbase Custody International Ltd., using offline cold storage to protect assets from hacks or technical failures.
It provides a regulated and convenient entry into Bitcoin exposure—especially for European institutional investors.
This marks BlackRock’s first direct crypto offering outside the U.S. and signals growing institutional interest in Bitcoin across global markets.
What’s the Difference Between an ETP and an ETF?
ETP (Exchange-Traded Product) is a broad category that includes all exchange-traded investment vehicles such as ETFs, ETNs (notes), and ETCs (commodities). ETPs are typically designed to track the performance of an underlying asset—like Bitcoin.
ETF (Exchange-Traded Fund) is a subset of ETPs, usually holding a basket of stocks, bonds, or other assets. ETFs are fund structures, often UCITS-compliant in Europe, and are subject to strict diversification and regulatory requirements.
Key difference:
All ETFs are ETPs because they are traded on exchanges and track something.
But not all ETPs are ETFs – for example, a Bitcoin ETP is usually not structured as a fund but rather as a commodity (ETC) or a note.
Some ETPs (like ETNs) can carry issuer risk – this means if the company that issued the product goes bankrupt, you could lose your money.
ETFs usually don’t have this risk, because the money is held separately (as “segregated assets”) and legally protected.
Why this matters for Bitcoin ETPs
A Bitcoin ETF in the U.S. is usually set up as a fund and strictly regulated.
A Bitcoin ETP in Europe (like BlackRock’s) is structured more like a commodity, backed 1:1 with real Bitcoin stored securely (in this case by Coinbase Custody). That backing is very important, because it removes the issuer risk – you know the Bitcoin is really there.
Summary in one sentence:A Bitcoin ETP is a type of exchange-traded product that tracks the price of Bitcoin – and while it works similarly to an ETF, it’s structured differently and may involve other risks unless it’s fully backed and securely stored. Stay informed! Don't miss out on important updates—share this article and subscribe to our newsletter! Other recent articles: Everything You Need to Know About the IMF's Planned BPM7 Reform and Its Impact on Bitcoin and Digital Currencies KULR Technology's Bitcoin Treasury Strategy: An In-Depth Analysis
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