BlackRock has launched its first Bitcoin-linked Exchange-Traded Product (ETP) on the London Stock Exchange, marking a pivotal moment for UK retail investors seeking regulated exposure to cryptocurrency. This move follows the United Kingdom’s Financial Conduct Authority (FCA) decision to ease restrictions on crypto-related investment products, specifically lifting a four-year ban on crypto exchange-traded notes (ETNs). The revised regulatory framework now permits these products to be traded on FCA-approved exchanges, thereby opening the door for wider retail participation in the crypto market through conventional investment platforms.
The iShares Bitcoin ETP is designed to track the price of Bitcoin, allowing investors to gain exposure without the need to directly hold or trade the digital asset on cryptocurrency exchanges. Units of the ETP are priced around $11 and offer the ability to purchase fractional shares, making Bitcoin investment more accessible, especially for retail investors who may be unfamiliar with the complexities of direct cryptocurrency trading. This listing places the product under regulated oversight with the underlying assets securely held by regulated custodians, enhancing investor confidence compared to unregulated crypto holdings.
BlackRock’s launch in the UK aligns with its broader strategy seen in continental Europe and the United States. Earlier in 2025, BlackRock introduced the iShares Bitcoin ETP on major European exchanges including Xetra in Germany, Euronext Paris, and Euronext Amsterdam. With custodianship by Coinbase and administrative oversight from the Bank of New York Mellon, the European offering underscored BlackRock’s commitment to providing secure, regulated crypto investment options. Furthermore, the company temporarily reduced fees to attract investors, offering a cost-effective entry point during the product’s initial phase.
The FCA’s regulatory adjustments are a significant factor enabling BlackRock’s UK offering. Historically, the FCA had banned retail investors from accessing crypto ETNs due to concerns about market volatility and investor protection. However, the regulator acknowledged the market’s maturity and increased mainstream adoption, prompting a reevaluation of its prior stance. David Geale, FCA’s executive director of payments and digital finance, highlighted that crypto products are now better understood and more mainstream, necessitating a balanced approach that allows investor choice while maintaining stringent promotion rules to ensure consumer protection. Despite easing access for ETNs, the FCA has retained restrictions on high-risk crypto derivatives for retail investors, reflecting its cautious approach to riskier crypto investment categories.
BlackRock’s role in the crypto investment landscape remains significant, with its U.S.-listed Bitcoin ETF managing assets exceeding $85 billion, which testifies to the growing institutional acceptance of crypto assets. By extending its crypto-linked product offerings to the UK, BlackRock is strategically positioning itself to meet rising demand for regulated and accessible Bitcoin investment vehicles, particularly from retail investors looking for familiar trading environments. This launch is occurring alongside other industry entrants such as 21Shares, which has introduced a range of crypto ETNs to the UK market.
The broader UK financial sector is also exploring blockchain technology applications, including the potential tokenisation of traditional assets, reflecting the country's effort to balance innovation with investor safety. As regulatory frameworks evolve, the FCA continues to monitor market developments and is open to further adjustments that support both innovation and consumer safeguards.
In summary, BlackRock’s debut of the iShares Bitcoin ETP on the London Stock Exchange represents a landmark regulatory and market development in the UK’s crypto investment space. Enabled by the FCA's updated stance on crypto products, this move affords retail investors regulated, secure access to Bitcoin exposure without direct ownership of the cryptocurrency. It signals growing mainstream acceptance of digital assets within traditional investment portfolios and reflects BlackRock’s expanding role as a leading provider of regulated crypto investment solutions globally.
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Source: Noah Wire Services