BlackRock Secures UK Approval for Crypto Operations
BlackRock, a global investment giant, has gained approval from the UK’s Financial Conduct Authority (FCA) to operate as a crypto asset firm. This move allows BlackRock to launch 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 rejections stem from incomplete or low-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, it will align with CoinShares’ $1.3 billion physical Bitcoin ETP, the largest in Europe.
Each IB1T share is backed by real Bitcoin held by Coinbase. This structure provides European investors with a regulated way to invest in Bitcoin without holding the currency directly. The ETP is issued through a Swiss-based vehicle to comply with European regulations.
BlackRock’s entry into Europe reflects 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.
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