In a landmark development for the United Kingdom’s digital asset ecosystem, the Financial Conduct Authority (FCA) has granted approval to BlackRock, the world’s largest asset manager, to expand its cryptocurrency operations within British borders. The approval, finalized on April 1, 2025, positions BlackRock as the 51st registered crypto asset firm in the UK, joining established entities like Coinbase, PayPal, and Revolut in a highly selective registry that accepts merely 9-14% of applicants.
The regulatory green light allows BlackRock, which manages approximately $12 trillion in assets, to operate its European Bitcoin exchange-traded product as a UK entity, greatly expanding its footprint in the British digital asset landscape. The iShares Bitcoin ETP, currently available on Euronext exchanges in Paris and Amsterdam, offers institutional and retail investors regulated exposure to Bitcoin with an initial expense ratio of 0.15%, scheduled to increase to 0.25% after the promotional period concludes. The iShares Bitcoin ETP was specifically designed for institutional and informed retail investors seeking regulated exposure to the cryptocurrency market.
This development occurs against a backdrop of regulatory stringency that has historically prompted many UK-based crypto firms to relocate to more accommodating jurisdictions. The FCA’s selective approach, while criticized for potentially hindering innovation, aims to guarantee that only credible market participants operate within the UK’s financial ecosystem, maintaining market integrity and consumer protection. Recent global developments show significant variance in regulatory approaches, with countries like China implementing complete bans while others adopt more progressive stances.
BlackRock’s entry into the UK crypto market follows its successful launch of the iShares Bitcoin Trust (IBIT) in the United States in January 2024, which has emerged as a leading Bitcoin ETF. The broader US spot Bitcoin ETF market has attracted over $107 billion in investments, demonstrating substantial appetite for regulated cryptocurrency investment vehicles. BlackRock’s Global Allocation Fund now holds Bitcoin ETF assets worth $47.4 million, showcasing the firm’s serious commitment to cryptocurrency investments.
Industry analysts suggest that BlackRock’s FCA approval may catalyze a reversal in the exodus of crypto businesses from the UK, potentially reinvigorating the nation’s aspirations to establish itself as a premier financial technology hub in the post-Brexit landscape. The approval may signal the FCA’s evolving stance toward digital assets, potentially encouraging increased innovation and investment within the UK’s cryptocurrency sector.
