BlackRock Gets FCA Approval To Operate In UK

BlackRock has received FCA approval to operate in the UK crypto market, strengthening its presence in European digital assets.

In the latest development, BlackRock, the world's largest asset management firm, has received approval from the FCA (Financial Conduct Authority) to operate as a legitimate crypto company.

The investment giant has achieved a significant milestone that has allowed it to expand further into the evolving digital asset market.

BlackRock Enters UK With FCA Approval

The official registration of BlackRock as the 51st crypto asset firm was announced by the FCA on 1 April 2025. BlackRock has joined an exclusive group of financial institutions such as Coinbase, PayPal and Revolut, which have met the FCA's strict regulatory standards.

BlackRock's iShares Bitcoin ETP has begun trading on the Paris and Amsterdam Euronext exchanges. This development expanded the firm's presence in the European cryptocurrency investment market.

The firm offered a temporary fee waiver to attract investors to the new product. The ETP maintained a 0.15 per cent expense ratio until the end of the year. After the exemption period, BlackRock will adjust its fee structure to 0.25%, in line with similar products such as CoinShares' Bitcoin ETP.

The iShares Bitcoin ETP is aimed at institutional investors and experienced retail traders. This investment tool offers a low-cost option to access Bitcoin within a regulated regulatory framework. With this move, BlackRock is establishing itself as a leader in the European digital asset sector, responding to the growing demand for cryptocurrency-based financial products.

Criticism At The FCA And The Regulatory Context

The FCA has received criticism for its conservative stance on cryptocurrency regulation. The regulator has granted approval to only 9% of the companies that applied to register as crypto service providers.

In this regard, Alan Wey, founder of Aventus, told DL News:

"This low approval rate raises concerns about the UK's ambition to become a cryptocurrency hub."

On the FCA's official website, it says that many applications lacked essential information or did not meet the required compliance standards.

"We rejected applications that did not include key components needed for assessment or whose poor quality made the submission invalid,"the FCA said.

Cryptoasset AML / CTF regime: feedback on good and poor quality applications

Feedback on good and poor quality applications made to us under money laundering regulations. Read this feedback to help you prepare your application for registration.

FCA

The approval obtained by BlackRock represents a major achievement. This development marks a further step on the path of cryptocurrencies towards recognition as a mainstream financial instrument. The UK thus joins BlackRock's expanding crypto asset operations, supporting the company's efforts to integrate Bitcoin with mainstream finance (TradFi).

BlackRock And the Growth of Investments in Crypto

Recently, BlackRock has introduced an Ethereum-based tokenized money fund, which has tripled in value in the past three weeks to a total of $2 billion.

BlackRock manages a portfolio of approximately $12 trillion in assets under management (AUM) and is strengthening its presence in the cryptocurrency market. In January 2024, BlackRock launched the iShares Bitcoin Trust (IBIT) in the US market. This financial instrument is currently the largest spot ETF on Bitcoin in the US, with assets worth almost $49 billion.

Institutional Interest For ETFs On Bitcoin

According to data from SoSoValue, institutional interest in Bitcoin ETFs has increased tremendously in recent times. Spot ETFs on Bitcoin in the US have attracted more than $95 billion in investments in the past year. The growing need for regulated investment options in Bitcoin is becoming increasingly evident.