BlackRock Gains Approval to Operate as Crypto Asset Firm in the UK
London, UK — April 1, 2025
In a significant development within the cryptocurrency sector, BlackRock, the world’s largest asset manager, has received approval from the UK’s Financial Conduct Authority (FCA) to operate as a registered crypto asset firm. This landmark approval allows BlackRock to provide cryptocurrency services in the UK and aligns with its ongoing expansion into the European crypto market.
FCA Approval Marks a New Era
On April 1, BlackRock became the 51st company to achieve registration with the FCA, highlighting a pivotal moment for both the firm and the cryptocurrency landscape. The FCA has faced scrutiny for its selective approval process, having registered only about 14% of the applicants seeking entry into the crypto space. The regulator has previously stated that submissions lacking essential components or poor quality content have been rejected to ensure compliance and proper assessment.
A spokesperson for the FCA did not provide immediate comments following BlackRock’s approval announcement. This regulatory green light is expected to bolster BlackRock’s capabilities, allowing it to operate its newly launched European Bitcoin exchange-traded product (ETP) from a UK base effectively.
The iShares Bitcoin ETP
The approval comes shortly after BlackRock launched its iShares Bitcoin ETP, which began trading on Euronext stock exchanges in Paris and Amsterdam. The product is introduced with an attractive fee structure that includes a temporary waiver, lowering the expense ratio to 0.15% until the end of the current year. Following that period, the ETP will return to an annual fee of 0.25%, placing it on par with competing products like those offered by CoinShares.
The iShares Bitcoin ETP represents a broader trend within the cryptocurrency market, where institutional interest is growing rapidly. The product caters to both institutional and informed retail investors, a move that reflects BlackRock’s strategy to tap into the increasing demand for cryptocurrency investment options.
Manuela Sperandeo, BlackRock’s head of Europe & Middle East iShares Product, commented on the significance of this launch, describing it as a potential tipping point in the industry. With both retail and professional investors showing heightened interest, Sperandeo emphasized that this dual demand will likely shape the future landscape of cryptocurrency investments.
The Broader Market Implications
The approval and subsequent launch of the iShares Bitcoin ETP come amidst a surge in cryptocurrency interest in Europe, particularly following BlackRock’s successful introduction of its spot Bitcoin ETF in the United States in January 2024, which has already amassed over $47 billion in assets. Collectively, U.S. spot Bitcoin ETFs have seen more than $107 billion in trading volume during their inaugural year, showcasing the burgeoning market appetite for these financial products.
While BlackRock has chosen not to comment publicly on this recent approval, industry analysts and investors are observing closely how the firm’s entrance into the UK crypto market can influence broader trends and future regulatory frameworks in the region.
As BlackRock continues to carve its path in the cryptocurrency market, its accomplishments serve as a catalyst for potential innovation and increased investment activity within the digital assets space. It remains to be seen how competitors will respond to BlackRock’s strategic moves and what implications these developments will have for investors and regulators alike.
For ongoing updates and insights into financial markets and cryptocurrencies, stay tuned to DL News.
For more information, please contact Eric Johansson at [email protected].
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