WIN BITCOIN
BlackRock has officially listed its iShares Bitcoin Exchange-Traded Product (ETP) on the London Stock Exchange (LSE).
This comes after the Financial Conduct Authority’s (FCA) decision to ease restrictions on crypto-linked investment products.
The ETP, ticker IB1T, allows retail investors to gain exposure to Bitcoin without directly trading or storing the cryptocurrency, offering a simplified entry point into the digital asset market.
The product is fully physically backed, with all Bitcoin held in secure custody through Coinbase.
BlackRock emphasized that the ETP removes the technical challenges of holding cryptocurrency, transferring responsibility for secure storage to the issuer.
According to the firm, Coinbase employs a combination of physical security, multiparty computation, and daily transfers to segregated cold storage wallets, ensuring institutional-grade protection for investors.
“The iShares Bitcoin ETP leverages years of integration between Coinbase and BlackRock, providing UK investors with a secure gateway to digital assets through traditional trading platforms,” said Jane Sloan, EMEA Head of Global Product Solutions at BlackRock.
With UK crypto ownership projected to grow to nearly four million adults over the next year, the launch is seen as timely, providing access to a regulated, familiar investment vehicle.
The ETP has a total expense ratio (TER) of 15 basis points per annum, including a temporary fee waiver until the end of 2025.
From January 1, 2026, the TER will increase to 25 bps. The BlackRock Investment Institute advises that for investors with suitable governance and risk tolerance, a 1–2% allocation to Bitcoin within multi-asset portfolios is reasonable, reflecting both potential upside and the asset’s high volatility.
UK retail ban lift on ETNs and ETPs
The debut follows a regulatory shift in the UK after the FCA lifted its four-year ban on retail access to crypto-linked exchange-traded notes (ETNs) and ETPs. Previously, retail investors were barred from such products due to high volatility and consumer risk concerns.
The FCA noted that the market has matured, with institutional-grade custodians and improved liquidity making such investments more suitable for regulated markets.
While the retail ban on crypto derivatives remains, the FCA has indicated ongoing monitoring of high-risk investments and opened the door for fund tokenization initiatives in the asset management sector.
The UK launch mirrors the success of BlackRock’s U.S. Bitcoin offerings. Its flagship iShares Bitcoin Trust ETF (IBIT) now manages over $100 billion, attracting both retail and institutional investors through traditional brokerage accounts.
In the third quarter of 2025, BlackRock reported $17 billion in net inflows into digital asset products, underlining strong demand for regulated crypto exposure.
