Key Takeaways
- • BlackRock received UK Financial Conduct Authority approval to operate as a crypto asset firm, enabling it to arrange transactions for its iShares Bitcoin ETP (ticker: IB1T) backed by Coinbase Custody International, with the product restricted to institutional and professional investors only.
- • Galaxy Digital secured an FCA license to execute derivatives trading through its London subsidiary, expanding its MiFID investment services capabilities in the UK market.
- • The FCA's crypto asset register now includes 51 firms with only a 14% application approval rate, positioning both BlackRock and Galaxy Digital among a highly vetted cohort including Coinbase, Fidelity, Gemini, and Kraken.
- • BlackRock's European iShares Bitcoin ETP launched earlier in April 2025 on Euronext Paris, Xetra Frankfurt, and Euronext Amsterdam, following the success of its U.S. spot Bitcoin ETF (IBIT), which generated over $40 billion in cumulative net inflows since its January 2024 debut.
- • UK regulatory restrictions limit crypto ETP accessibility to institutional and professional investors only, preventing retail participation on regulated markets.
Summary
BlackRock and Galaxy Digital achieved significant regulatory milestones in the UK on April 2, 2025, with the Financial Conduct Authority granting both firms enhanced operational permissions in the cryptocurrency and derivatives sectors. BlackRock's approval marks its inclusion on the FCA's crypto asset register, authorizing the asset manager to arrange transactions and sales related to iShares Digital Assets AG exchange-traded products backed by crypto assets. This registration enables BlackRock to operationalize its newly launched European spot Bitcoin ETP in the UK market, though distribution remains limited to institutional and professional investors due to existing FCA restrictions on retail crypto ETP participation.
Galaxy Digital, the cryptocurrency investment firm led by billionaire Mike Novogratz, secured authorization to execute derivatives trading through its London-based subsidiary, Galaxy Digital UK Ltd. The company's license places it on the FCA's investment firms register, qualifying it to perform MiFID investment services and activities. This expansion strengthens Galaxy Digital's European derivatives operations and reflects growing institutional appetite for regulated crypto trading infrastructure.
The regulatory environment remains highly selective. The FCA's crypto asset register currently comprises 51 firms, with approval granted to only approximately 14% of applications—an exceptionally stringent standard. Existing registrants include major institutional players such as Coinbase, Fidelity, Gemini, and Kraken, indicating the competitive advantage conferred by FCA registration. BlackRock's approval arrives as the asset manager scales its cryptocurrency offerings following the January 2024 launch of its U.S. spot Bitcoin ETF (IBIT), which has accumulated over $40 billion in net inflows and established itself as the largest spot Bitcoin ETF in the United States. The iShares Bitcoin ETP launched in early April 2025 across Euronext Paris (ticker: IB1T), Xetra Frankfurt, and Euronext Amsterdam (ticker: BTCN), with custody provided by Coinbase International in cold storage.
These approvals signal continued institutional legitimization of cryptocurrency market infrastructure within major regulated markets, while the UK's bifurcated investor access model—institutional-only for crypto ETPs on regulated venues—reflects ongoing regulatory caution regarding retail participation in digital asset products.
Galaxy Digital, the cryptocurrency investment firm led by billionaire Mike Novogratz, secured authorization to execute derivatives trading through its London-based subsidiary, Galaxy Digital UK Ltd. The company's license places it on the FCA's investment firms register, qualifying it to perform MiFID investment services and activities. This expansion strengthens Galaxy Digital's European derivatives operations and reflects growing institutional appetite for regulated crypto trading infrastructure.
The regulatory environment remains highly selective. The FCA's crypto asset register currently comprises 51 firms, with approval granted to only approximately 14% of applications—an exceptionally stringent standard. Existing registrants include major institutional players such as Coinbase, Fidelity, Gemini, and Kraken, indicating the competitive advantage conferred by FCA registration. BlackRock's approval arrives as the asset manager scales its cryptocurrency offerings following the January 2024 launch of its U.S. spot Bitcoin ETF (IBIT), which has accumulated over $40 billion in net inflows and established itself as the largest spot Bitcoin ETF in the United States. The iShares Bitcoin ETP launched in early April 2025 across Euronext Paris (ticker: IB1T), Xetra Frankfurt, and Euronext Amsterdam (ticker: BTCN), with custody provided by Coinbase International in cold storage.
These approvals signal continued institutional legitimization of cryptocurrency market infrastructure within major regulated markets, while the UK's bifurcated investor access model—institutional-only for crypto ETPs on regulated venues—reflects ongoing regulatory caution regarding retail participation in digital asset products.
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