Bitcoin Exchange-Traded Product (ETP) by BlackRock Now Available in Germany; however, investors are advised to be aware of all implications

Dive into Germany's Bitcoin Market: All About BlackRock's ETP

Bitcoin Exchange-Traded Product (ETP) by BlackRock Now Available in Germany; however, investors are advised to be aware of all implications

Starting Tuesday, January 10, 2024, the iShares Bitcoin ETP (ISIN: XS2940466316) joins the German stock market, offering investors an opportunity to invest in digital gold. But before diving in, here are some essential deets to keep in mind.

In the United States, Bitcoin ETFs erupted in popularity post-approval, with the iShares Bitcoin ETF leading the pack. Now, it's making its way to the heart of Europe.

BlackRock's ETP Steps onto the XETRA Stage

The iShares Bitcoin ETP has now landed on XETRA, providing investors secure access to Bitcoin through physically held coins. While it might sound like an ETF, it's actually an ETP due to regulatory reasons in Europe - products with only one holding can't be classified as index funds.

Boasting low costs, the BlackRock ETP is a steal compared to competitors. With an action TER of 0.15% until the end of 2025, and a regular TER of 0.25%, it's a fantastic offer that'll make your pocket happy.

Things to Consider Before Investing

Now, before you get too excited and hit the buy button, there are a few noteworthy facts to consider. Though investors in Germany can physically hold Bitcoins with the 21Shares Bitcoin ETP (ISIN: CH0454664001), the BlackRock ETP does not seem to offer this benefit yet.

This implies that investors will be exposed to withholding tax on any gains, whereas the 21Shares ETP is tax-exempt for holding periods over a year. Therefore, potential investors should weigh the benefits and drawbacks before deciding to commit.

Further Reading

• Goldman Sachs: Is the Stock Market's Resurgence upon Us?
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1. The iShares Bitcoin ETP (ISIN: XS2940466316), offered by BlackRock, is available for investing in Germany's stock market, joining the fray of Bitcoin Market offerings.
2. Unlike Bitcoin ETFs in the United States, the new ETP is classified as an ETP in Europe due to regulatory reasons, as it has only one holding.
3. The BlackRock ETP is a cost-effective choice, boasting lower Total Expense Ratios (TER) compared to competitors until the end of 2025.
4. Investors considering the BlackRock ETP should be aware that it doesn't offer the physical holding benefit of Bitcoins yet, unlike the 21Shares Bitcoin ETP, which may result in a withholding tax on any gains.

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