BlackRock has launched its iShares Bitcoin ETP on the London Stock Exchange after the FCA eased restrictions on crypto investments for retail investors.
BlackRock launches its Bitcoin ETP in the UK after FCA rule changes
BlackRock, the world’s largest asset manager with a $10 trillion portfolio, has launched a Bitcoin exchange-traded product (ETP) in the UK. The move comes after the UK’s financial regulator the FCA eased restrictions on cryptocurrency investment vehicles.
The iShares Bitcoin ETP was listed on the London Stock Exchange on Monday, the company’s website confirmed. According to the Sunday Times, investors can now buy Bitcoin shares starting at $11 without owning the cryptocurrency itself.
What is BlackRock’s Bitcoin ETP
The new product is designed as a Bitcoin-linked security — it replicates the price dynamics of BTC, but operates in a regulated environment. This allows UK investors to gain exposure to Bitcoin through regular brokerage accounts, without having to use crypto exchanges.
BlackRock has already become a leader in the crypto ETP segment. Its iShares Bitcoin ETF has more than $85 billion in net assets, according to SoSoValue.
FCA opens the door to crypto investments
The launch of the ETP coincides with a historic decision by the FCA. On October 9, the regulator lifted a four-year ban on crypto exchange-traded notes (ETNs), allowing them to trade on FCA-approved exchanges.
“The market has changed significantly since the restrictions were introduced, and the products have become clearer and more mature,” said David Gale, the FCA’s executive director for digital finance.
Crypto ETNs operate similarly to other securities, with the underlying assets held in trusted custodians.
What’s next for the UK market
Despite the liberalisation, the FCA has maintained its ban on crypto derivatives for retail investors, but said it would “monitor the market and review its approach as necessary”.
The UK has also allowed the tokenisation of funds, which could radically change the way asset management is structured. On 14 October, the FCA announced that blockchain in funds has “the potential to fundamentally change the industry”.
BlackRock continues to strengthen its position in the digital asset space. Following the success of its ETFs in the US, the company is now paving the way for mass adoption of Bitcoin in Europe – this time under the supervision of the UK regulator.
Related: BlackRock’s Bitcoin ETF Becomes World’s Most Profitable ETF, Collecting $245 Million in Fees
