- BlackRock lists an iShares Bitcoin ETP on the London Stock Exchange after the FCA relaxes crypto ETP/ETN restrictions.
- The product is physically backed, with Bitcoin held in Coinbase custody and shifted to offline cold storage daily.
- Units can be bought via regular brokerage accounts, with fractional exposure starting at around $11.
- U.S. iShares Bitcoin ETF success tops $87.5B AUM; UK rules still bar retail crypto derivatives.
BlackRock has launched an iShares Bitcoin exchange-traded product on the London Stock Exchange, a move that gives UK retail investors a regulated route to Bitcoin exposure following the Financial Conduct Authority’s recent policy shift.
The security is designed to mirror Bitcoin’s price without requiring self-custody or the use of crypto exchanges, offering fractional units from roughly $11 and access through familiar brokerage platforms.
What BlackRock has listed and how it works
The offering is an exchange-traded product that seeks to track the market value of Bitcoin while trading on a regulated venue. It provides fractional exposure via exchange-listed units and settles like other securities on the LSE.
According to BlackRock, the ETP is physically backed: underlying coins are held in Coinbase custody with institutional-grade safeguards. At the end of each trading day, Bitcoin is moved from execution wallets to segregated offline cold storage as part of the security protocol.
By wrapping crypto exposure in a listed security, investors get price tracking and regulated-market trading hours, with the convenience of standard brokerage accounts and no need to manage private keys.
Why now: A regulatory shift in the UK
The debut follows the FCA’s decision on October 9 to relax a four-year ban on certain crypto-linked ETPs and ETNs, opening the door for UK market access under tighter oversight and listing standards.
FCA executive David Geale indicated that the market has evolved and these products are now better understood by participants. Even so, the regulator continues to prohibit retail trading of crypto derivatives and will closely monitor these higher-risk investments.
Demand and the broader market context
BlackRock executives see growing appetite for regulated digital asset exposure in Britain, with expectations that the UK crypto investor base could approach around 4 million participants in the year ahead.
The UK launch arrives after the strong run of BlackRock’s U.S. spot Bitcoin ETF, which became the firm’s most profitable fund within roughly 21 months and now manages over $87.5 billion in assets, despite recent market softness.
Recent volatility has produced mixed flows across digital asset vehicles, with investment products recording weekly outflows of about $513 million at one point, underscoring that sentiment remains sensitive to macro headlines and price swings.
How UK retail investors can access the ETP
Investors can buy and sell units on the London Stock Exchange via standard brokerage accounts, gaining exposure to Bitcoin’s price without opening a crypto exchange account or handling wallets.
With the ability to purchase fractional exposure from roughly $11, the ETP lowers the entry threshold; however, Bitcoin remains a high‑volatility asset, and the FCA still bars retail trading of crypto derivatives, reflecting its cautious stance on risk.
Implications for the UK’s digital asset ambitions
The rollout dovetails with the FCA’s broader agenda to foster innovation, including recent steps to let asset managers explore fund tokenization using blockchain, aimed at modernizing fund operations and efficiency.
Industry watchers say regulated access through ETPs could attract UK wealth managers and bolster London’s competitiveness against European hubs such as Frankfurt and Zurich, where crypto investment vehicles have been gaining traction.
Bringing a physically backed Bitcoin ETP to the LSE gives UK retail investors a regulated pathway to crypto exposure, combining traditional market infrastructure, institutional custody and tighter oversight; the coming months will reveal how adoption, liquidity and risk controls balance as demand evolves.
