BlackRock, one of the world’s largest asset managers overseeing around $12 trillion in assets, has secured approval from the UK’s Financial Conduct Authority (FCA) to offer its new European Bitcoin exchange-traded product (ETP) in the UK market. This regulatory milestone places BlackRock among a select group of firms legally permitted to provide digital asset services in Britain. The FCA’s approval marks a major step forward in institutional cryptocurrency adoption across Europe.
A High Bar: FCA’s Strict Screening Process
The FCA maintains rigorous standards for registering digital asset service providers. Only 14% of applications submitted to the agency have received approval. Most rejections stemmed from poor-quality submissions or missing information. BlackRock cleared these regulatory hurdles by providing comprehensive, high-standard documentation and adhering strictly to the agency’s compliance requirements.
With this approval, BlackRock becomes the 51st company to join a registry that includes major players such as Coinbase, PayPal, and Revolut. The inclusion strengthens BlackRock’s foothold in the UK’s evolving crypto landscape and offers legitimacy to its new product—the iShares Bitcoin ETP, which trades under the ticker IB1T.
Launching Across Europe with Competitive Fees
BlackRock launched the IB1T on Euronext Paris and Amsterdam last week, targeting European institutional and retail investors who seek exposure to Bitcoin without directly holding the cryptocurrency. The firm introduced the product with an initial promotional fee structure. Until the end of 2024, IB1T will carry a reduced expense ratio of 0.15%. After that, the fee will increase to 0.25%, matching that of CoinShares’ $1.3 billion physical Bitcoin ETP—the largest of its kind in Europe.
BlackRock’s move to offer discounted fees aims to attract early investors and build liquidity. By offering an affordable, regulated, and transparent Bitcoin investment vehicle, BlackRock seeks to dominate a market that continues to show growing interest in digital assets.
Direct Bitcoin Exposure with Institutional-Grade Custody
Each share of the IB1T is backed by actual Bitcoin, which Coinbase holds in secure institutional custody. This setup allows investors to gain exposure to the world’s leading cryptocurrency without handling wallets, keys, or complex self-custody solutions.
The ETP structure simplifies access for institutional investors, pension funds, and wealth managers who want regulated, auditable Bitcoin exposure. Unlike synthetic products or derivatives, IB1T provides full asset backing. This transparency appeals to conservative investors wary of counterparty risks in crypto markets.
Structured for Compliance and Efficiency
BlackRock issued the IB1T through a Swiss-based special-purpose vehicle (SPV). This structure complies with European financial regulations, offering a clean and transparent framework for investors and regulators alike. Switzerland’s crypto-friendly stance, paired with its robust legal infrastructure, makes it an ideal jurisdiction for housing such a vehicle.
The SPV setup also separates the assets of the ETP from BlackRock’s broader balance sheet, protecting investors in the event of legal or financial complications. This architecture not only ensures regulatory compliance but also enhances investor confidence in the product’s long-term stability.
Building on the Success of IBIT in the U.S.
BlackRock leveraged its experience in the U.S. market, where it launched the iShares Bitcoin Trust (IBIT) earlier. Since its inception, IBIT has amassed over $48 billion in assets under management, according to VettaFi. That figure cements its place as one of the most successful spot Bitcoin ETFs globally.
By using a similar framework for IB1T, BlackRock plans to replicate its American success in the European market. The demand for regulated, institutional-grade crypto investment products continues to rise, and IB1T gives BlackRock a strong entry point in a region where retail and institutional investors alike seek new avenues for crypto exposure.
A Broader Shift in Global Crypto Investment
BlackRock’s expansion into European crypto markets reflects a broader shift in global financial sentiment. Institutional investors no longer view Bitcoin as a fringe asset. Instead, they now recognize its potential as a store of value, inflation hedge, and portfolio diversifier.
CEO Larry Fink reinforced this view in his recent annual letter. As Crypto.news reported on March 31, Fink warned that excessive U.S. government spending and rising national debt could undermine the dollar’s dominance. In his view, Bitcoin may offer investors a safer alternative in an uncertain macroeconomic environment.
Fink’s statement aligns with a growing narrative among institutional leaders who now consider Bitcoin part of a long-term asset allocation strategy. As traditional macro risks escalate, many asset managers begin to explore Bitcoin’s potential to offset currency devaluation, especially in high-inflation or high-debt economies.
What This Means for the European Crypto Market
BlackRock’s FCA approval and European launch of IB1T send a strong signal to the rest of the investment world: institutional-grade Bitcoin exposure is no longer a niche offering—it’s becoming a mainstream asset class.
European investors now have access to a BlackRock-managed, physically-backed Bitcoin ETP regulated across multiple jurisdictions. The product’s low fees, transparent structure, and use of reputable custodians make it an attractive option for portfolio managers, family offices, and high-net-worth individuals seeking regulated crypto investment options.
Moreover, the product launch will likely pressure other major players to enter or expand within the region. As BlackRock sets a precedent, competitors will feel the urgency to develop similar offerings or risk losing market share in a rapidly evolving asset class.
The Road Ahead: Crypto as Core Infrastructure
BlackRock’s latest move confirms a long-term belief in digital assets as part of core financial infrastructure. While retail investors have driven much of the earlier crypto enthusiasm, institutional players now lead the next phase of adoption.
The IB1T product not only brings credibility to Bitcoin in Europe but also helps normalize cryptocurrency investment as a routine part of modern portfolio management. If current trends continue, Europe will likely witness more ETF-style crypto offerings, tighter regulatory frameworks, and increased investor participation.
BlackRock has already laid the foundation with the successful rollout of IBIT in the U.S. Now, with IB1T, the firm positions itself at the center of Europe’s Bitcoin investment wave. Whether the market faces volatility or rapid adoption, BlackRock stands ready to shape the future of institutional crypto investment.
Final Thoughts
BlackRock’s FCA approval and launch of IB1T in European markets represent more than just another financial product release. The development signals a shift in how global markets perceive and engage with Bitcoin. Backed by real assets, regulated by trustworthy authorities, and managed by one of the world’s most influential asset firms, IB1T offers a gateway for the next generation of crypto investors.
As Larry Fink continues to advocate for Bitcoin as a potential store of value amid global financial uncertainty, BlackRock’s strategic moves show that institutional belief in crypto’s future has never been stronger. The age of agentic, regulated, and mainstream Bitcoin exposure is no longer a forecast—it’s already unfolding.
