BlackRock Gains UK FCA Approval to Operate as Crypto Asset Firm

• BlackRock’s U.S. Bitcoin ETF currently commands $48.97 billion in net assets, representing roughly 2.9% of BTC’s total supply.
• BlackRock recently launched a new BTC ETP in European markets.
• The FCA has approved just 14% of crypto service business applications since January 2020.

World-leading asset management firm BlackRock has received the green light from the U.K.’s Financial Conduct Authority (FCA) to offer crypto asset services and products.

BlackRock has now become one of the privileged few to receive approval, becoming the 51st to join the register since January 2020.

BlackRock UK

According to the FCA’s website, BlackRock is now listed alongside Coinbase, Moonpay, and eToro after becoming the 51st firm to receive approval to operate as a crypto asset firm in the U.K.

Notably, the FCA has very high and stringent approval standards, resulting in a slim 14% approval rate for hopeful crypto asset business applicants.

The implication is that the $12 trillion asset management behemoth can now roll out its newly created Bitcoin exchange-traded product (ETP), the iShares Bitcoin ETF (IB1T), to U.K. investors.  Moreover, the firm can pursue launching other crypto-related services and products that may be better suited for UK markets.

The news comes just a week after BlackRock launched IB1T into Europe’s ETP market via the Xetra, Euronext Paris, and Euronext Amsterdam exchanges.

Dominance

BlackRock’s U.S. Bitcoin exchange-traded fund (ETF), the iShares Bitcoin Trust (IBIT), has been a roaring success, beating out the competition with $39.96 billion in cumulative net inflows. The fund commands a whopping $48.97 billion in net assets.

There is a risk that smaller firms will be elbowed out of the competition as it’ll be incredibly difficult to compete with BlackRock’s credibility and branding, not to mention the trillions of dollars in assets it has under its command.

Furthermore, there are concerns that BlackRock’s ever-expanding Bitcoin offerings have a centralizing effect, with IBIT currently representing 2.9% of Bitcoin’s total supply.

But, it does lend itself to the U.K.’s post-Brexit ambitions to open up new investment opportunities in the country and reposition itself as one of the world’s leading financial technology (FinTech) hubs.