BlackRock Gains FCA Approval as a Crypto Asset Firm in the UK

BlackRock, the world’s largest asset manager, received approval from the UK’s Financial Conduct Authority (FCA) to operate as a crypto asset firm.

This marks a significant milestone for the investment giant, allowing it to extend its influence in the growing digital asset market.

BlackRock Joins Crypto Elite with FCA Approval in the UK

With this approval, BlackRock can operate its newly launched European Bitcoin exchange-traded product (ETP) as a UK entity.

According to the FCA’s website, BlackRock officially became the 51st company registered as a crypto asset firm on April 1, 2025. The firm joins a select group of financial entities, including Coinbase, PayPal, and Revolut, which have met the FCA’s stringent regulatory requirements.

FCA approves BlackRock registration. Source: FCA website

BlackRock’s iShares Bitcoin ETP recently launched on the Euronext stock exchanges in Paris and Amsterdam. As BeInCrypto reported, this marked an expansion of the firm’s footprint in the European crypto investment market.

To attract investors, the product was introduced with a temporary fee waiver. It reduced its expense ratio to 0.15% until the end of the year. Once the waiver expires, the fee will revert to 0.25%, aligning with competing products like CoinShares’ Bitcoin ETP.

The iShares Bitcoin ETP is designed for institutional and informed retail investors. It offers a regulated and cost-effective way to gain exposure to Bitcoin. This move also positions BlackRock as a leader in the European digital asset space, catering to the growing demand for crypto-based financial products.

Meanwhile, the FCA has faced criticism for its cautious approach to crypto regulation. It has only approved around 9% of all applicants seeking registration as crypto asset firms.

“This low level of application approval signifies potential concern for the UK’s ambition to become a crypto hub,” Alan Vey, founder of web3 firm Aventus and a former Brevan Howard developer, said recently.

The regulator has defended its strict policies. A statement on its website articulated that many submissions lack essential information or fail to meet compliance standards.

“We have rejected submissions that didn’t include key components necessary for us to carry out an assessment, or the poor quality of key components meant the submission was invalid,” the FCA wrote.

Therefore, BlackRock’s FCA approval is not a mean feat. It marks another step in the mainstream adoption of crypto. With the UK now part of BlackRock’s growing crypto asset operations, the firm continues to push forward in integrating Bitcoin into traditional finance (TradFi).

BlackRock also manages approximately $12 trillion in assets (AUM) and continues actively expanding its crypto market presence. It launched its iShares Bitcoin Trust (IBIT) in the US in January 2024. The financial instrument has since grown into the largest US spot Bitcoin ETF, managing nearly $49 billion in assets.

BlackRock’s IBIT AUM. Source: SoSoValue

Moreover, the surge in institutional interest in Bitcoin ETFs has been remarkable. In just one year, US spot Bitcoin ETFs have attracted over $95 billion in investments, SoSoValue data shows. This highlights the increasing demand for regulated Bitcoin investment vehicles.