BlackRock Secures FCA Approval for Bitcoin ETP in Europe

BlackRock, the world's largest asset manager, has secured approval from the UK's Financial Conduct Authority (FCA) to offer its Bitcoin exchange-traded product (ETP), IB1T, in the European market. This development signifies a strategic move by BlackRock to capitalize on the growing institutional and retail interest in regulated Bitcoin exposure outside the US.

The FCA's approval allows BlackRock to be added to its cryptoasset register, joining other prominent names like Coinbase, PayPal, and Revolut. This milestone positions BlackRock to expand its crypto footprint in Europe, following the successful launch of similar products in the US.

The FCA has been stringent with crypto firms seeking registration, with only 14% of applications approved. BlackRock's entry into the register underscores the company's commitment to meeting the FCA's rigorous compliance requirements, thereby bolstering investor confidence in IB1T as a legitimate alternative to direct Bitcoin holdings.

The iShares Bitcoin ETP, listed under the ticker IB1T, began trading on Euronext Paris and Amsterdam last week. To attract investors, the fund has introduced a temporary expense ratio of 0.15%, which will remain in effect until the end of 2024. After this period, the fee will increase to 0.25%, aligning it with competitors such as CoinShares’ Physical Bitcoin ETP. Each IB1T share is backed by physical Bitcoin, with Coinbase acting as the custodian. The structure is similar to BlackRock’s iShares Bitcoin Trust (IBIT) in the US, which has already accumulated significant assets.

By launching the European fund through a Swiss-based special-purpose vehicle, BlackRock has ensured compliance with EU financial rules while offering investors direct, regulated exposure to Bitcoin. This move comes amid growing interest in crypto investment products across the region, where European investors have historically faced fewer options than their US counterparts. The arrival of BlackRock’s ETP could shift market dynamics, with the firm’s established credibility and infrastructure expected to accelerate adoption, especially among institutions and cautious retail participants.

Larry Fink, BlackRock’s CEO, recently highlighted macroeconomic risks tied to rising US debt levels. In public remarks, he noted that these fiscal pressures could challenge the dollar’s status as the dominant global reserve currency—strengthening the argument for Bitcoin as a long-term store of value.

The FCA’s greenlight of IB1T places BlackRock among a growing list of global companies registered to offer crypto services in the UK. The timing is significant as European regulators continue to implement the Markets in Crypto-Assets (MiCA) framework, which aims to harmonize crypto regulation across the EU. Although the UK is no longer part of the bloc, FCA registration remains essential for companies targeting British investors.

The IB1T launch expands BlackRock’s crypto offering to a broader geographic base, positioning the asset manager to benefit from emerging regulatory clarity and rising investor demand in Europe. With the product now accessible in the UK, BlackRock is set to play a larger role in shaping the future of regulated Bitcoin exposure on the continent.