BlackRock secures FCA approval to offer Bitcoin ETP in the UK, marking a major step in crypto market expansion - IcoHolder.

BlackRock, the global investment giant with $12 trillion in assets under management, has secured approval from the UK’s Financial Conduct Authority (FCA) to operate as a crypto asset firm. This approval, granted on April 1, enables BlackRock to offer its European Bitcoin exchange-traded product (ETP) in the UK, marking a significant expansion into the region's cryptocurrency market.

BlackRock’s iShares Bitcoin ETP, which began trading last week on Euronext Paris and Amsterdam, provides investors with a regulated way to gain exposure to Bitcoin without holding the cryptocurrency directly. The product, traded under the ticker IB1T, is backed by actual Bitcoin held in custody by Coinbase. It launched with a temporary fee waiver that reduces its expense ratio to 0.15% until the end of 2024, after which the fee will increase to 0.25%, aligning with the cost structure of CoinShares’ $1.3 billion Bitcoin ETP, the largest in Europe.

With this development, BlackRock joins a select group of companies, including Coinbase, PayPal, and Revolut, as one of only 51 firms registered with the FCA for crypto-related activities. The FCA’s approval process is notably rigorous, with just 14% of applications receiving approval due to stringent requirements for high-quality and complete information.

BlackRock's move follows the success of its iShares Bitcoin Trust (IBIT) in the United States, which has amassed over $48 billion in assets since its inception. The company’s growing commitment to Bitcoin products reflects an increasing demand for such investment options beyond North America. This trend aligns with CEO Larry Fink’s recent comments about the potential for Bitcoin to serve as a store of value amid concerns over rising U.S. debt and the weakening dominance of the U.S. dollar.

The launch of the iShares Bitcoin ETP in the UK underscores BlackRock’s strategy to cater to European investors seeking exposure to Bitcoin in a regulated framework, signaling growing interest in crypto assets across global markets.