BlackRock granted FCA approval to launch Bitcoin ETP in the UK
BlackRock has secured approval from the UK’s leading financial markets authority, the Financial Conduct Authority, to function as a crypto asset firm.
As reported by DL News on April 1, the global investment powerhouse, which manages approximately $12 trillion in assets, can now introduce its new European Bitcoin (BTC) exchange-traded product in the UK. With this nod from the regulator, BlackRock becomes the 51st entity to register with the FCA, joining the ranks of firms like Coinbase, PayPal, and Revolut.
Notably, the FCA has approved just 14% of applications, highlighting its stringent approval process. The authority revealed that many applications were declined due to incomplete or low-quality submissions.
The iShares Bitcoin ETP, trading under the ticker IB1T, commenced trading last week on Euronext Paris and Amsterdam. It launched with a temporary fee waiver, reducing its expense ratio to 0.15% until the end of 2024. After this period, the fee will increase to 0.25%, in line with CoinShares’ $1.3 billion physical Bitcoin ETP, the largest in Europe.
Each share is backed by actual Bitcoin held in custody by Coinbase, providing investors with direct exposure to the cryptocurrency. BlackRock’s initiative follows the success of its iShares Bitcoin Trust, known as IBIT, which is listed in the United States and has accrued over $48 billion in assets since its launch, according to data from VettaFi.
IB1T employs a similar framework to offer European investors a compliant avenue to gain exposure to Bitcoin without holding the asset directly. The ETP is issued via a Swiss-based special-purpose vehicle to ensure adherence to European regulatory standards.
BlackRock’s entry into the European market signals a growing demand for Bitcoin investment products beyond North America. CEO Larry Fink recently expressed concerns that escalating U.S. debt could undermine the dollar’s dominance, potentially bolstering Bitcoin’s position as a store of value.
As noted by Crypto.news on March 31, Fink highlighted in his annual letter that due to excessive government spending, investors may gravitate towards Bitcoin as a more secure alternative.