BlackRock Gains UK Approval for Crypto Operations
BlackRock, a global investment giant, has received approval from the UKS Financial Conduct Authority (FCA) to operate as a crypto asset firm. This move allows BlackRock to offer its European Bitcoin (BTC) exchange-traded product (ETP) in the UK.
BlackRock joins a select group of companies like Coinbase, PayPal, and Revolut, becoming the 51st firm registered with the FCA. The approval process is stringent, with only 14% of applications succeeding. Many were rejected due to incomplete or poor-quality information.
The iShares Bitcoin ETP,trading under IB1T,began on Euronext Paris and Amsterdam last week. It offers a temporary fee waiver, reducing its expense ratio to 0.15% until 2024. Afterward, the fee will increase to 0.25%, matching CoinShares’ leading European Bitcoin ETP.
Each IB1T share is backed by real Bitcoin held by Coinbase, providing investors with direct exposure to the cryptocurrency. This follows the success of BlackRock’s iShares Bitcoin Trust (IBIT) in the US, which has amassed over $48 billion in assets.
BlackRock’s entry into Europe highlights growing demand for Bitcoin investment products outside North America. CEO Larry Fink noted in his annual letter that rising U.S. debt could weaken the dollar, potentially boosting Bitcoin’s appeal as a store of value.
