BlackRock Launches Bitcoin-Backed ETP on London Stock Exchange for UK Investors

• Regulated Access: Enables UK institutions to invest in Bitcoin via traditional platforms post-FCA ban lift.

• Physical Backing: Directly supported by Bitcoin assets, eliminating need for personal custody.

• Growing Demand: UK crypto investors projected to reach four million, with 21% growth in first-time buyers over the next year, per BlackRock research.

BlackRock’s iShares Bitcoin ETP launches on LSE, giving UK investors secure Bitcoin exposure. Backed by Coinbase Prime, it’s ideal for institutions. Explore fees, regulation, and growth trends today!

What is BlackRock’s iShares Bitcoin ETP?

BlackRock’s iShares Bitcoin ETP is a regulated exchange-traded product designed for UK-based institutional clients seeking exposure to Bitcoin through established financial channels. Launched on the London Stock Exchange under the ticker IB1T, it allows investors to participate in Bitcoin’s price movements without the complexities of direct ownership or self-custody. The ETP is physically backed by actual Bitcoin assets held securely by Coinbase Prime, a prominent institutional digital asset custodian, ensuring alignment with the cryptocurrency’s value while adhering to high standards of security and oversight.

How has the FCA’s decision to lift the ban on crypto products influenced this launch?

The UK’s Financial Conduct Authority (FCA) recently lifted its ban on certain Bitcoin-based investment products, creating a pivotal opportunity for major asset managers like BlackRock to introduce regulated offerings. This regulatory shift addresses previous concerns over consumer protection and market integrity, allowing institutions to provide safer access to digital assets. According to reports from FT Adviser, the move has spurred innovation, with BlackRock’s ETP built on institutional-grade infrastructure that integrates seamlessly with traditional trading platforms.

Supporting data from BlackRock’s ‘People & Money: The Next Wave of Crypto Investors in the UK’ report highlights the timeliness of this launch. Cryptocurrency demand among UK investors has surged by 12% since 2022, positioning the UK as the third-ranked European market for crypto investment growth. Jane Sloan, EMEA Head of Global Product Solutions at BlackRock, emphasized, “As the UK crypto investor base is projected to approach four million over the next year, today’s listing of ETPs like iShares Bitcoin ETP unlocks a securer gateway to digital assets through traditional investment platforms.” She further noted that the product enables participation in Bitcoin markets with the confidence of robust custody and regulatory oversight.

This development not only democratizes access but also mitigates risks associated with unregulated exchanges. Official FCA guidelines now permit such products for professional investors, fostering a more mature ecosystem. BlackRock’s ETP, with its emphasis on transparency and low costs, exemplifies how firms are responding to these changes, potentially attracting billions in institutional capital to the crypto space.

Frequently Asked Questions

What are the fees associated with BlackRock’s iShares Bitcoin ETP?

The iShares Bitcoin ETP carries a total expense ratio (TER) of 0.15% annually until December 31, 2025, after which it increases to 0.25%. These competitive fees, as outlined on BlackRock’s official product details, make it an attractive option for institutional investors seeking cost-effective Bitcoin exposure without compromising on security or regulation.

Is BlackRock’s iShares Bitcoin ETP suitable for institutional investors in the UK?

Yes, the iShares Bitcoin ETP is tailored for UK institutional clients, offering regulated access to Bitcoin via the London Stock Exchange. Backed by physical assets in Coinbase Prime’s cold storage and compliant with FCA standards, it provides a secure, straightforward way to diversify portfolios with digital assets, ideal for those prioritizing oversight and institutional-grade infrastructure.

Key Takeaways

• Regulated Entry Point: The launch marks a significant step for UK institutions, following the FCA’s ban lift, enabling compliant Bitcoin investment through familiar exchanges.
• Secure Custody: Physically backed by Bitcoin in Coinbase Prime’s cold storage, the ETP ensures high-level protection against common crypto risks like hacks or loss.
• Market Growth Insight: With UK crypto adoption rising 12% since 2022 and projected to hit four million investors soon, this product positions BlackRock to capture expanding demand—consider integrating it into diversified strategies now.

Conclusion

BlackRock’s iShares Bitcoin ETP represents a milestone in bridging traditional finance with the Bitcoin ETP ecosystem, particularly for UK institutions navigating the post-FCA regulatory landscape. By leveraging secure custody from Coinbase Prime and low fees, it addresses key barriers to entry while capitalizing on the UK’s robust crypto growth trajectory. As digital asset adoption accelerates, products like this ETP will likely play a central role in mainstreaming Bitcoin investment. Investors should monitor ongoing regulatory developments and consult financial advisors to align such opportunities with their portfolios. Published by COINOTAG on [Insert Publication Date, e.g., October 2025]; Last Updated [Insert Update Date].

The ETP is physically backed by Bitcoin and secured by Coinbase Prime’s cold storage system.

BlackRock has launched its iShares Bitcoin ETP (IB1T) on the London Stock Exchange today. With this, it is providing a regulated exchange-traded product (ETP) for UK-based institutional clients to gain exposure to Bitcoin.

According to a report from FT Adviser, the ETP offers investors an exposure to Bitcoin without them needing to hold the assets directly. The product is physically backed by Bitcoin held in custody through Coinbase Prime, a leading institutional digital asset custodian.

FCA lifts ban on investment assets

The launch follows the UK’s Financial Conduct Authority (FCA) lifted its ban on some Bitcoin-based investment products. Institutions like Blackrock have taken this opportunity to give British investors an easy and more regulated access to digital assets.

According to BlackRock, the product is built on “institutional-grade infrastructure” and offers investors a simple gateway to digital assets through traditional trading platforms.

“As the UK crypto investor base is projected to approach four million over the next year, today’s listing of ETPs like iShares Bitcoin ETP unlocks a securer gateway to digital assets through traditional investment platforms.” Jane Sloan, EMEA Head of Global Product Solutions at BlackRock said.

She also added that the product enables investors to participate in bitcoin markets “with the confidence of robust custody and regulatory oversight.”

The company said demand for cryptocurrency among UK investors has grown by 12% since 2022. Research from its ‘People & Money: The Next Wave of Crypto Investors in the UK’ report predicts that the number of first-time crypto investors will grow by 21% over the next 12 months. The UK is also ranked third in Europe for growth in crypto investments.

According to the Blackrock website, the ETP has a total expense ratio (TER) of 15 basis points annually until December 31, 2025, and 25 basis points thereafter.