BlackRock’s IB1T secures UK approval as FCA greenlights European Bitcoin ETP

BlackRock’s expansion into the European cryptocurrency market has gained traction, with the UK’s Financial Conduct Authority (FCA) approving its Bitcoin exchange-traded product (ETP), IB1T.

This development marks a notable shift in the accessibility of crypto investment vehicles across the continent, signaling the asset manager’s strategy to tap into growing institutional and retail interest in regulated Bitcoin exposure outside the US.

According to DL News, the FCA has added BlackRock to its cryptoasset register, allowing the company to offer its Bitcoin ETP in the UK market.

BlackRock is the 51st firm to get the regulator approval, joining names like Coinbase, PayPal, and Revolut.

The milestone positions the world’s largest asset manager to broaden its crypto footprint in Europe, following the successful rollout of similar products in the US.

FCA approval rate at 14%

The UK regulator has been particularly strict with crypto firms seeking registration. Of all applications received, only 14% have been approved, according to the FCA.

Most were rejected due to missing information or documentation that failed to meet quality standards.

BlackRock's entry into the register reflects the company's adherence to the FCA’s rigorous compliance requirements, bolstering investor confidence in IB1T as a legitimate alternative to direct Bitcoin holdings.

The FCA’s decision to approve BlackRock’s product also highlights a broader institutional shift toward regulated crypto offerings in Europe, where market participants are increasingly demanding transparency and safeguards.

IB1T fee and structure

The iShares Bitcoin ETP, listed under the ticker IB1T, began trading on Euronext Paris and Amsterdam last week.

To attract investors, the fund has introduced a temporary expense ratio of 0.15%, which will remain in effect until the end of 2024.

After this period, the fee will increase to 0.25%, putting it in line with competitors such as CoinShares' $1.3 billion (£1.03 billion) Physical Bitcoin ETP—the largest in Europe.

Each IB1T share is backed by physical Bitcoin, with Coinbase acting as the custodian. The structure is similar to BlackRock’s iShares Bitcoin Trust (IBIT) in the US, which has already accumulated over $48 billion (£37.6 billion) in assets, according to data from VettaFi.

By launching the European fund through a Swiss-based special-purpose vehicle, BlackRock has ensured compliance with EU financial rules while offering investors direct, regulated exposure to Bitcoin.

Demand for crypto ETPs grows

BlackRock’s move into Europe with IB1T comes amid growing interest in crypto investment products across the region.

The FCA’s decision aligns with the broader trend of increasing demand for regulated Bitcoin vehicles beyond North America.

While European investors have historically faced fewer options than their US counterparts, the arrival of BlackRock's ETP could shift market dynamics.

The firm’s established credibility and infrastructure are expected to accelerate adoption, especially among institutions and cautious retail participants.

Larry Fink, BlackRock's CEO, recently highlighted macroeconomic risks tied to rising US debt levels.

In public remarks, he noted that these fiscal pressures could challenge the dollar’s status as the dominant global reserve currency—strengthening the argument for Bitcoin as a long-term store of value.

BlackRock expands UK footprint

The FCA’s greenlight of IB1T places BlackRock among a growing list of global companies registered to offer crypto services in the UK.

The roster now includes major financial platforms such as PayPal, Coinbase, and Revolut.

The timing is significant as European regulators continue to implement the Markets in Crypto-Assets (MiCA) framework, which aims to harmonise crypto regulation across the EU.

Although the UK is no longer part of the bloc, FCA registration remains essential for companies targeting British investors.

The IB1T launch expands BlackRock’s crypto offering to a broader geographic base, positioning the asset manager to benefit from emerging regulatory clarity and rising investor demand in Europe.

With the product now accessible in the UK, BlackRock is set to play a larger role in shaping the future of regulated Bitcoin exposure on the continent.