BlackRock, the world’s largest asset management firm with over $10 trillion in assets under management, is preparing to launch its first European Bitcoin exchange-traded product (ETP). According to Bloomberg, the fund will be based in Switzerland, and marketing efforts could begin as early as this month.
BlackRock’s strategic expansion beyond the U.S
This marks BlackRock’s first crypto-linked ETP outside of the United States, following the success of its U.S.-based iShares Bitcoin ETF (IBIT). The IBIT fund has quickly accumulated nearly $60 billion in assets in just over a year, demonstrating strong investor demand for Bitcoin-backed securities.
BlackRock faces rising competition in the European Crypto market
BlackRock’s move comes amid increasing interest from investment firms in expanding their crypto-backed financial products across Europe. Recently, crypto exchange Kraken secured a license to offer derivatives in the region, joining platforms such as Bitstamp and FTX EU in the growing market.
Competitive pressure on Fees and BlackRock’s offerings
The launch of BlackRock’s Bitcoin ETP in Europe could further intensify competition among providers, many of whom have responded with fee reductions and promotional offers. Some ETPs in Europe have charged expense ratios as high as 2.5%, significantly higher than their U.S. counterparts.
BlackRock’s market Impact and future outlook
While key details such as the fee structure remain unknown, industry experts believe BlackRock’s entry signals its long-term commitment to the global crypto market. “U.S. ETFs dominate in cost and liquidity, but this move shows commitment from the world’s biggest asset manager,” said Bloomberg analyst Eric Balchunas.
As of now, U.S.-based Bitcoin ETFs hold a staggering 91% of the global market, but BlackRock’s expansion could reshape the competitive landscape in Europe. The company has not provided further comments on the development.
Gold-Pegged Cryptocurrencies rise as precious metal reaches new high amid Trade War concerns
Gold surges to record levels amid Economic uncertainty
Gold-backed cryptocurrencies are surging as the price of the precious metal reaches new record highs amid increasing global economic uncertainty. Gold has rallied nearly 9.7% so far this year, hitting an all-time high of $2,880 per ounce. Meanwhile, most major cryptocurrencies have struggled to remain in the green.
PAX Gold and Tether Gold lead Crypto gains
Among the biggest beneficiaries of gold’s rally are PAX Gold (PAXG) and Tether Gold (XAUT), both of which have gained roughly 10%, tracking the spot price of gold. These tokens, each backed by one troy ounce of gold stored in a vault, have seen their supply expand significantly, with weekly token mints outpacing burns by millions of dollars. Data from RWA.xyz also shows that transfer volumes for gold-backed cryptocurrencies have surged by 53.7% month-over-month.
Gold Miners and ETFs see strong gains
Traditional gold investments have also reaped rewards. The VanEck Gold Miners ETF (GDX), which tracks gold mining stocks, has climbed nearly 20% this year, far outpacing the S&P 500’s performance.
Factors driving Gold’s growth
Gold’s continued rise has been fueled by growing trade war tensions between the U.S. and China, increased demand during China’s Spring Festival holidays, and a broader shift towards safe-haven assets. According to the World Gold Council, global demand for gold reached 4,945.9 tons in 2023, amounting to approximately $460 billion.
Bitcoin and Crypto market lag behind
In contrast, major cryptocurrencies have had a lackluster year. Bitcoin (BTC) is up just 3.6%, while Ether (ETH) has plunged more than 17.6%. The CoinDesk 20 Index, which tracks the broader crypto market, is barely positive, rising only 0.5%.
Could Bitcoin catch up?
Despite Bitcoin’s underperformance, analysts remain optimistic. Mike Cahill, a core contributor to the Pyth Network, suggests that the divergence between gold and Bitcoin is temporary. “Trade war fears and a strong dollar are driving investors to traditional safe havens, but when liquidity returns, Bitcoin could rally strongly,” he said.
Cahill also pointed out that former President Donald Trump’s recent pro-crypto stance could significantly boost Bitcoin’s outlook. “Smart investors know BTC remains the hardest asset next to gold, and once pro-crypto policies materialize, Bitcoin could benefit massively,” he added.
Who is Andean Medjedovic, the suspected hacker behind the $48M KyberSwap exploit?
Federal prosecutors in the United States have charged Canadian national Andean Medjedovic for his alleged involvement in the $65 million hacks of two decentralized finance (DeFi) protocols, KyberSwap and Indexed Finance. The U.S. Department of Justice (DOJ) unsealed an indictment on February 3, accusing Medjedovic of wire fraud, computer hacking, and attempted extortion.
A prodigy turned hacker
Medjedovic, a former math prodigy from the University of Waterloo, completed his undergraduate degree at 17 and was on track for a PhD. However, he soon turned his skills to DeFi exploits, winning security competitions and studying automated market makers (AMMs).
The indexed finance hack
In October 2021, Medjedovic allegedly manipulated trading algorithms on Indexed Finance, exploiting two liquidity pools on the Ethereum network to steal $16.5 million. His involvement was further exposed when his hacker wallet contained neo-Nazi references and racial slurs embedded in the exploit code. After skipping a Canadian court hearing in December 2021, he went into hiding.
KyberSwap attack and extortion attempt
The DOJ indictment linked Medjedovic to the $49 million hack of KyberSwap, where he allegedly used borrowed funds to manipulate prices and trigger smart contract glitches. Prosecutors say he later attempted to extort KyberSwap developers, demanding complete control of the company and its governance system (KyberDAO) in exchange for returning the stolen funds.
On the run, authorities in pursuit
Medjedovic has reportedly travelled across Europe and South America, using crypto mixers and fake identities to launder stolen funds. U.S. authorities, alongside Dutch cybercrime units, continue their efforts to track him down. With Medjedovic still at large, it remains uncertain when or if he will face justice.
