BlackRock, the world’s largest asset manager, has officially received approval from the UK’s Financial Conduct Authority (FCA) to operate as a crypto asset firm, clearing the path for its European Bitcoin exchange-traded product (ETP) to reach investors in the United Kingdom. The approval solidifies BlackRock’s position as a major player in the crypto space and signals a new chapter for institutional involvement in digital assets across Europe.

The iShares Bitcoin ETP, trading under the ticker symbol IB1T, launched last week on Euronext Paris and Amsterdam. The product offers direct exposure to Bitcoin, with each share backed by real Bitcoin held in custody by Coinbase. For investors in Europe, this represents one of the most straightforward and regulated paths to investing in Bitcoin—without the complexities of self-custody or dealing with crypto wallets.

Notably, BlackRock is only the 51st firm to be granted registration by the FCA under its stringent crypto regime. According to the agency, just 14% of applications have been approved due to missing or inadequate information, making the regulatory green light a noteworthy accomplishment for BlackRock.

To attract early adopters, BlackRock has introduced a temporary fee waiver on IB1T, dropping the expense ratio to just 0.15% through the end of 2024. After this promotional period, the fee will increase to 0.25%, putting it in line with CoinShares’ physically-backed Bitcoin ETP, which currently leads the European market with $1.3 billion in assets.

This move follows the success of BlackRock’s iShares Bitcoin Trust (IBIT) in the United States, which has already crossed $48 billion in assets under management since its inception. The European version, IB1T, is structured through a Swiss special-purpose vehicle to meet the continent’s financial compliance standards, ensuring a secure and transparent offering for investors.

The decision to expand into the UK and Europe isn’t just about geographic reach—it’s a response to growing demand. The appetite for Bitcoin investment products is on the rise outside of North America, driven in part by increasing concerns over global economic stability. In a recent annual letter, BlackRock CEO Larry Fink highlighted the potential weakening of the US dollar due to soaring national debt, suggesting that Bitcoin could emerge as a more stable store of value in the long run.

By combining the scale of a financial powerhouse like BlackRock with the rising investor interest in digital assets, this new Bitcoin ETP could reshape how European markets approach crypto exposure. It’s another milestone in the ongoing evolution of traditional finance and decentralized assets, and one that might inspire other institutional players to follow suit.