BlackRock, the world’s largest asset manager and issuer of crypto exchange-traded funds (ETFs), has received approval from the UK’s Financial Conduct Authority (FCA) to operate as a crypto asset firm.
According to reports circulating on social media highlighting this milestone for the asset manager, this will allow the launch of its new European Bitcoin Exchange Traded Product (ETP) under UK regulations.
51st Crypto Firm Registered In The UK
The iShares Bitcoin ETP, which debuted on the Euronext stock exchanges in Paris and Amsterdam last week, follows BlackRock’s successful introduction of a spot Bitcoin ETF in the United States in January 2024.
That ETF has quickly become the largest in the US, amassing over $47 billion in assets within a few months. Overall, the US spot Bitcoin ETF market has attracted more than $107 billion during their first year of trading, reflecting a robust demand for Bitcoin investment products.
With this approval, BlackRock becomes the 51st company registered as a crypto asset firm with the FCA, joining a roster that includes major players like crypto exchange Coinbase, PayPal, and Revolut.
However, the FCA has faced criticism for its stringent approval process, having only accepted about 14% of the applications it has received. Against this, the regulator indicated that many submissions lacked critical components necessary for assessment, which led to their rejection.
BlackRock’s Bitcoin ETP Introduces Competitive Fee Structure
The iShares Bitcoin ETP offers a competitive edge with an initial fee waiver of 10 basis points, reducing its expense ratio to 0.15% until the end of the year. After this period, the fee will revert to 0.25%, aligning it with similar products, such as those offered by CoinShares.
Interestingly, this pricing strategy positions the asset manager’s Bitcoin ETP as one of the most affordable options available to both institutional and informed retail investors in the country.
Manuela Sperandeo, BlackRock’s head of Europe & Middle East iShares Product, commented on the significance of this launch, stating, “It reflects what really could be seen as a tipping point in the industry — the combination of established demand from retail investors with more professionals now really getting into the fold.”
Currently, the market’s leading cryptocurrency, Bitcoin, is trading at $83,000, recording a loss of 7% in the monthly time frame. However, compared to its record high of $109,000 reached in January this year, it records a 23% gain to that milestone.
This comes amid broader market challenges, led by the so-called “tariff war” implemented by President Donald Trump, despite the pro-crypto regulation of his new administration in the White House.
Featured image from Shutterstock, chart from TradingView.com
