BlackRock has recently secured approval from the UK’s Financial Conduct Authority (FCA) to operate as a crypto asset firm, marking a major milestone for the global investment giant.
According to DL News, with approximately $12 trillion in assets under management, BlackRock is now authorized to offer its new European Bitcoin exchange-traded product (ETP) in the UK. This regulatory approval makes BlackRock the 51st company registered with the FCA, joining other prominent players like Coinbase, PayPal, and Revolut in expanding their crypto-related services in the region.
According to the report, this approval comes amidst the FCA’s selective approach, with only 14% of applications being granted. The agency highlighted that many submissions were rejected due to incomplete or low-quality information, emphasizing the high regulatory standards firms must meet to operate in the UK’s crypto market.
In line with its strategy, BlackRock launched the iShares Bitcoin ETP, traded under the ticker IB1T, on Euronext Paris and Amsterdam last week. To attract investors, the fund initially offered a temporary fee waiver, reducing its expense ratio to 0.15% through the end of 2024. However, after that period, the fee will rise to 0.25%, aligning it with CoinShares’ $1.3 billion physical Bitcoin ETP, the largest of its kind in Europe. The iShares Bitcoin ETP offers investors direct exposure to Bitcoin, with each share backed by real Bitcoin held in custody by Coinbase. This move follows the success of BlackRock’s iShares Bitcoin Trust (IBIT) in the U.S., which has accumulated over $48 billion in assets since its launch, according to VettaFi data.
BlackRock’s expansion into Europe highlights the growing demand for Bitcoin investment products outside of North America. CEO Larry Fink recently warned that rising U.S. debt could weaken the dollar’s dominance, which may further bolster Bitcoin’s role as a store of value in the financial ecosystem.
Additionally, BlackRock continues its crypto acquisition strategy, adding 3,840 ETH, valued at $10.7 million, to its iShares Ethereum Trust (ETHA). On February 4, 2025, the firm also purchased 100,535 ETH for $276 million. As a result, the fund’s total Ethereum holdings now stand at 1,356,774 ETH, with an approximate market value of $3.71 billion.
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