tl;dr
BlackRock has been approved by the UK's Financial Conduct Authority (FCA) to operate as a registered crypto asset firm in the country. This approval allows BlackRock to support its client, iShares Digital Assets AG, in managing crypto-related exchange-traded products (ETPs) within a restricted scope...
BlackRock has received approval from the UK's Financial Conduct Authority (FCA) to operate as a registered crypto asset firm in the country. This approval enables BlackRock to support its client, iShares Digital Assets AG, in managing crypto-related exchange-traded products (ETPs) within a restricted scope. The firm is permitted to facilitate crypto asset transactions for ETP subscriptions and redemptions, sell digital assets for fiat currency, and convert digital assets into fiat during early redemptions. However, it is not allowed to onboard new clients for this service without FCA permission, operate automated fiat-to-crypto machines, or hold or control client funds. The approval could potentially lead to the expansion of BlackRock's iShares Bitcoin ETP to the UK, following its recent launch for European users in various exchanges last month.
BlackRock's approval by the FCA places it among a growing list of regulated companies in the UK's digital asset space, including Coinbase and Kraken. The asset manager's registration is tailored to a narrow scope of services, allowing it to support iShares Digital Assets AG in managing crypto-related ETPs within the specified restrictions. Market observers suggest that this approval could pave the way for the expansion of BlackRock's iShares Bitcoin ETP to the UK, following its recent launch for European users in various exchanges.
BlackRock's iShares Bitcoin ETP, launched for European users via the Euronext exchanges in Paris, Amsterdam, and Germany's Xetra exchanges, is available to institutional and knowledgeable retail investors. This product aims to provide secure and regulated access to Bitcoin through traditional stock exchanges, with a temporary fee waiver that reduces its total expense ratio to 0.15% until the end of the year. It is denominated in US dollars and backed by Bitcoin, which is held in offline cold storage by Coinbase.