BlackRock has received approval from the UK's Financial Conduct Authority (FCA) to operate as a crypto asset firm. With this registration, BlackRock can now offer its new European Bitcoin exchange-traded product (ETP) in the UK.

The iShares Bitcoin ETP (IB1T) recently began trading on Euronext Paris and Amsterdam. Initially launched with a fee waiver reducing costs to 0.15% until the end of 2024, its expense ratio will increase to 0.25% next year.

Each IB1T share is backed by actual Bitcoin held by Coinbase. The product provides investors with regulated exposure to cryptocurrency.

The FCA's approval process remains stringent, with only 14% of applications granted. BlackRock's move follows the success of its US-listed iShares Bitcoin Trust (IBIT). The fund has accumulated over$48 billion in assets.

The company's European expansion reflects growing demand for Bitcoin investment products beyond North America.

BlackRock CEO Larry Fink has suggested that mounting US debt could weaken the dollar's dominance. It could reinforce Bitcoin's appeal as a store of value. He highlighted a potential shift among investors seeking alternatives amid rising government expenditure.

For more information on these topics, visit diplomacy.edu.