BlackRock Approved for Crypto Services in the UK, Strengthens Digital Asset Strategy

BetDaddy Takeaways:

🟠 BlackRock receives FCA approval as a crypto asset firm in the UK, but its crypto services are restricted to a single client and purpose.

🟠 The registration supports crypto-related exchange-traded products (ETPs) through iShares Digital Assets AG, with no retail expansion permitted.

🟠 The move signals a controlled yet steady rise in institutional crypto asset activity and cryptocurrency in the UK.

Global investment giant BlackRock has secured registration from the UK’s Financial Conduct Authority (FCA) as a crypto asset firm in the UK, further cementing its presence in the evolving digital finance landscape. This approval comes as part of the firm’s continued but measured expansion into crypto services, specifically designed to support crypto-related exchange-traded products.

With this registration, BlackRock joins a growing list of firms – such as Coinbase and Kraken – that have obtained regulatory approval for crypto asset activity in the UK. However, BlackRock’s permission is tightly focused: it may only support its client iShares Digital Assets AG, with services centered around ETPs linked to cryptocurrencies.

BlackRock’s Scope of Activity – What is Allowed

The FCA registration outlines a narrow operational scope. BlackRock is permitted to facilitate crypto transactions that allow the creation and redemption of ETP units – essentially enabling crypto-related exchange-traded products to function smoothly between the issuer and authorized participants. Additionally, it can:

Sell digital assets to cover operational costs, converting crypto to fiat currency to pay service providers.
Handle early redemption processes by converting crypto holdings into fiat currency when needed.

These activities are confined to supporting the iShares-branded ETP, with no onboarding of additional clients allowed unless explicitly approved by the FCA. Furthermore, BlackRock is prohibited from holding or managing client funds, nor may it operate automated machines that exchange fiat for crypto or vice versa.

iShares Bitcoin ETP and the Bigger Picture

The regulatory approval aligns with BlackRock’s broader push into digital assets, especially through its iShares Bitcoin ETP, which recently launched on the Euronext exchanges in Paris and Amsterdam, and Germany’s Xetra. The product offers secure exposure to Bitcoin via traditional stock exchanges and is targeted at institutional and sophisticated retail investors.

Backed by physically held Bitcoin stored offline by Coinbase, the ETP gives investors a regulated way to engage with crypto markets without the complexities of managing private keys or navigating unregulated exchanges. Currently, a temporary fee waiver reduces the total expense ratio to just 0.15%, making it a competitively priced entry point for those exploring cryptocurrency in the UK and across Europe.

Crypto Services in the UK: A Cautious but Strategic Step Forward

BlackRock’s cautious entrance into UK crypto services reflects a larger trend: institutional players are entering the digital asset space with care, compliance, and long-term vision. Although the scope of activity remains limited, the presence of such a financial heavyweight reinforces the growing maturity of crypto asset activity and regulatory trust in crypto-related exchange-traded products.

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