Global asset management giant BlackRock has officially secured approval from the UK’s Financial Conduct Authority (FCA) to operate as a crypto asset firm, paving the way for its new Bitcoin exchange-traded product (ETP) in Europe.
This approval makes BlackRock the 51st company registered with the FCA, joining major financial players like Coinbase, PayPal, and Revolut. Notably, the FCA has only approved 14% of applications, signaling the regulator’s strict standards. Many firms were reportedly rejected due to incomplete or low-quality submissions.
A Major Step for Bitcoin Investment in Europe
BlackRock’s iShares Bitcoin ETP (IB1T) is already trading on Euronext Paris and Amsterdam. The fund initially launched with a 0.15% fee waiver that will last until the end of 2024, after which it will increase to 0.25%, matching CoinShares’ $1.3 billion physical Bitcoin ETP—the largest in Europe.
Each IB1T share is backed by real Bitcoin, securely held by Coinbase. This product allows investors to gain exposure to Bitcoin without directly holding the cryptocurrency, making it an attractive option for institutional and retail investors alike.
BlackRock’s Growing Influence in Crypto
This European launch follows the success of BlackRock’s iShares Bitcoin Trust (IBIT) in the U.S., which has amassed over $48 billion in assets. The company is using a Swiss-based special-purpose vehicle to ensure compliance with European financial regulations.
The move signals growing institutional demand for Bitcoin investment products outside of North America. BlackRock’s CEO Larry Fink recently expressed concerns about rising U.S. debt, suggesting that excessive government spending could weaken the U.S. dollar’s dominance and make Bitcoin a more attractive store of value.
As interest in regulated Bitcoin investment options rises, BlackRock’s entry into the European market could be a game-changer for institutional adoption across the region.
