After establishing itself as a titan in traditional finance for decades, BlackRock has officially planted its flag in the United Kingdom’s cryptocurrency landscape, receiving approval from the Financial Conduct Authority (FCA) on April 1, 2025. The world’s largest asset manager became the 51st company to secure this coveted registration, joining an exclusive club that represents just 14% of applicants since the regulatory framework began in 2020.
This milestone enables BlackRock to manage crypto-backed Exchange-Traded Products (ETPs) through its subsidiary, iShares Digital Assets AG. Think of ETPs as the cryptocurrency equivalent of traditional stock portfolios – except instead of shares in Apple or Tesla, investors get exposure to Bitcoin without having to navigate the technical hurdles of crypto wallets and private keys.
ETPs offer Bitcoin exposure without the crypto wallet headaches—Wall Street’s on-ramp to digital gold.
The approval comes with guardrails, however. BlackRock can’t directly onboard new clients or handle fiat-to-crypto transactions without explicit FCA permission. It’s like getting a driver’s license that only lets you drive on certain roads – freedom with boundaries. This careful approach demonstrates how companies must adapt to global regulatory frameworks while still pursuing innovation in the digital asset space.
BlackRock’s iShares Bitcoin ETP (ticker: IB1T) provides direct Bitcoin exposure with assets securely stored in Coinbase’s cold storage – fundamentally a digital Fort Knox. To sweeten the deal, they’re waiving fees to reduce the expense ratio to 0.15% until the end of 2024, undercutting competitors in the market. The company has already demonstrated its commitment by making a $15.1 million direct Bitcoin purchase to reinforce its Bitcoin trust offerings.
The move aligns with CEO Larry Fink’s vision of Bitcoin as a potential hedge against dollar depreciation and builds upon the success of BlackRock’s U.S. Bitcoin Trust, which already holds approximately $48 billion in assets.
For the UK, this development strengthens its position as a post-Brexit financial innovation hub. The UK’s proactive crypto regulation has created an environment that attracts established financial institutions while maintaining investor protections. For investors, it represents a new opportunity to access cryptocurrency through a regulated, mainstream financial institution.
And for the broader crypto ecosystem, BlackRock’s entry likely signals the next wave of institutional adoption, potentially bringing unprecedented legitimacy to digital assets that were once considered fringe investments.
