BlackRock Expands Bitcoin Investment in Europe with FCA Approval

BlackRock, the global asset manager with nearly $12 trillion in assets under management, has just received approval from the UK Financial Conduct Authority (FCA) to sell its European Bitcoin exchange-traded product (ETP) in the UK. BlackRock is the 51st company to receive FCA approval after household names like Coinbase, PayPal, and Revolut.

The FCA is known to have a tough approval process, with only 14% of applications being successful. Others have been rejected because of a lack of, or error in information, so BlackRock’s successful registration is even more noteworthy. The move indicates increased interest in making investments in Bitcoin outside North America.

iShares Bitcoin ETP: A New Way to Invest

The iShares Bitcoin ETP, listed under the ticker IB1T, has already started trading on Euronext Paris and Amsterdam. To attract investors, BlackRock has temporarily reduced its fee to just 0.15% until the end of 2024. After that, the fee will rise to 0.25%, which is in line with CoinShares’ $1.3 billion physical Bitcoin ETP, the largest in Europe.

What makes IB1T unique is that every real BTC backs its every share, and these are in coinbase custody. It enables investors to get exposure to Bitcoin without necessarily holding or being liable for the cryptocurrency themselves. The product follows the success of BlackRock’s U.S.-traded iShares Bitcoin Trust (IBIT), which has already amassed more than $48 billion in assets.

A Step Towards Regulated Bitcoin Investing in Europe

To comply with European financial laws, BlackRock has set up IB1T through a special-purpose vehicle in Switzerland. This setup ensures that the product is in line with legal requirements while offering investors a regulated platform to invest in Bitcoin. The fact that BlackRock is expanding its Bitcoin investment channels throughout Europe shows a growing demand on an international level.

European institutional and retail investors now have an alternative way of accessing Bitcoin without the intricacy of direct ownership. BlackRock’s entry may open the door for other traditional financial institutions to enter the market, further establishing Bitcoin’s position in the global markets.

Bitcoin as a Hedge Against Economic Instability

BlackRock CEO Larry Fink has recently shared his opinion regarding the future of Bitcoin as a safe-haven asset. In his letter to CEOs, he warned that rising U.S. debt may erode the dollar’s dominance in the world. Therefore, investors will start considering Bitcoin as a safe store of value.

With this latest expansion, European investors now have a further regulated means of accessing Bitcoin exposure. As governments continue to pour money into their treasuries and inflation remains a threat, the appeal of Bitcoin as an alternative asset is only going to grow. BlackRock’s latest move shows that cryptocurrency is being increasingly accepted as part of the financial mainstream.