In a bold move that could shake up the crypto landscape, BlackRock has officially snagged its crypto license from the UK’s Financial Conduct Authority (FCA). This happened on April 1, 2025. No joke. BlackRock is now the 51st company to get registered as a crypto asset firm with the FCA.
But don’t get too excited; their operations are limited. They can only support exchange-traded products (ETPs) related to crypto assets. It’s a start, but certainly not a free-for-all.
This is significant. BlackRock’s entry into the digital asset space could light a fire under smaller firms hoping to get FCA approval. After all, only 14% of applications actually make it through the FCA’s rigorous and often brutal vetting process.
BlackRock’s move into crypto could spark fierce competition among smaller firms vying for FCA approval.
The FCA has a reputation for being tough as nails, enforcing strict regulations to keep money laundering in check. Companies like Coinbase and Revolut have managed to navigate these walls, but many smaller firms have fled to more crypto-friendly jurisdictions. The UK’s regulatory environment is no walk in the park.
Now, what does BlackRock plan to do with this shiny new license? They’re facilitating transactions related to ETPs and converting assets for operational expenses. Additionally, they aim to leverage their European Bitcoin ETP to capture the growing demand for Bitcoin investment products. This strategy aligns with the popularity of crypto ETFs, which allow investors to gain exposure to cryptocurrencies without owning the digital coins.
But hold your horses! They can’t onboard new clients without FCA permission. If they want to sell digital assets for cash, they can. But no fiat-crypto machines here.
Their iShares Bitcoin ETP, which launched across Europe, is a big deal. It’s backed by Bitcoin held safely in cold storage, and they’ve even slashed the expense ratio to 0.15% until December 2025. Sounds tempting, right?
With BlackRock’s massive assets under management, small firms are probably sweating bullets. Competition is fierce. BlackRock isn’t just playing; they’re rewriting the rules.
The future? Uncertain. But one thing’s clear: the FCA’s tough regulations are pushing innovation elsewhere. Good luck, smaller rivals!
