BlackRock’s new bitcoin ETP has started trading on the London Stock Exchange after the UK Financial Conduct Authority relaxed its rules on cryptocurrency investment vehicles. The timing couldn’t be better as UK crypto ownership will likely reach almost four million adults next year. British investors can now access Bitcoin through regulated channels without worrying about cryptocurrency storage or management.
The iShares Bitcoin ETP (IB1T) makes Bitcoin investment more available with units costing around £11, which costs way less than buying whole bitcoins. The product charges a competitive fee of 0.15% until January 2026. BlackRock’s success story speaks for itself – their flagship Bitcoin ETF has already gathered £85.5 billion in net assets. The FCA’s decision to lift its 2021 ban lets UK retail investors buy cryptocurrency through investment products they already know. This will change how British investors deal with digital assets in a regulated space.
BlackRock launches Bitcoin ETP on London Stock Exchange
BlackRock, the world’s largest asset manager, has added to its cryptocurrency portfolio. The iShares Bitcoin ETP became available on the London Stock Exchange on October 20, 2025. This launch is the most important milestone for UK retail investors who want regulated Bitcoin exposure.
What is the iShares Bitcoin ETP?
The iShares Bitcoin ETP wants to give investors direct exposure to Bitcoin through a regulated exchange-listed product. This exchange-traded product (ETP) is fully backed by Bitcoin held in custody through Coinbase. Investors can get exposure to the cryptocurrency’s spot price without managing private keys or digital wallets.
The product has a simple investment goal. Each ETP security matches a specific amount of Bitcoin, called the “Cryptoasset Entitlement”. As of October 21, 2025, this entitlement stands at 0.000099913 Bitcoin per security.
How does the ETP provide Bitcoin exposure?
The product uses actual Bitcoin holdings instead of derivatives or futures contracts. Coinbase Custody International Limited, the designated custodian, keeps all Bitcoin in offline cold storage.
Coinbase offers institutional-grade security through physical security measures, multiparty computation, and strict process controls. On top of that, it moves Bitcoin into segregated, offline cold storage wallets at the end of each trading day. This gives investors’ assets increased protection.
What is the ticker and minimum investment?
You can trade the iShares Bitcoin ETP on the London Stock Exchange under the ticker symbol IB1T. Investors can buy units starting at about £11. This makes Bitcoin exposure available to retail investors with smaller budgets.
The ETP comes with a competitive total expense ratio (TER) of 0.15% yearly, including a temporary fee waiver until 2025 ends. The expense ratio will rise to 0.25% from January 2026. The fund has gathered impressive assets, with a series value of USD 664,587,851 as of October 21, 2025.
This product is part of BlackRock’s broader cryptocurrency strategy. The company’s US-based spot Bitcoin ETF has been a soaring win with over £85 billion in managed assets.
UK regulator lifts ban on crypto ETPs for retail investors
The Financial Conduct Authority (FCA) lifted its four-year ban on retail access to crypto exchange-traded notes (ETNs) on 8 October 2025. British investors can now buy crypto-backed products through their regular investment accounts, marking a significant change from January 2021.
What changes did the FCA implement?
Retail consumers now have access to crypto ETNs when traded on FCA-approved UK-based investment exchanges (Recognised Investment Exchange or RIE). The financial promotion rules ensure consumers get proper risk information without unsuitable investment incentives. These products fit into tax-efficient wrappers like ISAs and SIPPs, bringing UK practises in line with markets in the US, Canada, and EU countries.
Bitcoin ETPs and ETFs work similarly but have different structures. ETFs operate as pooled investment vehicles on major exchanges, while ETPs typically work as debt instruments that track underlying assets. The FCA gave permission only to ETNs and kept ETF restrictions because “ETFs marketed to UK retail investors are unable to invest directly into cryptoassets under the current regulatory framework for funds”.
Why did the FCA reverse its stance?
David Geale, FCA executive director of payments and digital finance, shared his thoughts: “Since we restricted retail access to cETNs, the market has evolved, and products have become more mainstream and better understood”. The market’s maturity since 2021 prompted this reversal. The regulator emphasised that firms offering these products must follow Consumer Duty rules.
What remains restricted under current rules?
The FCA keeps some restrictions in place. The ban on retail access to cryptoasset derivatives continues, which means ordinary investors cannot access leveraged products with amplified exposure. The regulator made it clear that these investments won’t get Financial Services Compensation Scheme (FSCS) protection.
UK crypto adoption keeps growing, with about 12% of UK adults owning or having owned crypto, up from 4% in 2021. First-time crypto investors might increase by 21% next year.
How does the ETP differ from a Bitcoin ETF?
The difference between ETPs and ETFs is significant for investors learning about Bitcoin investment options. Exchange-traded products (ETPs) make up a broader category that has exchange-traded funds (ETFs). ETFs are just one specific type of ETP.
Bitcoin ETP vs ETF: Key structural differences
ETPs work as debt securities backed by physical Bitcoin. ETFs operate as investment companies registered under different regulatory frameworks. The trade settlement in ETPs happens in Bitcoin, which makes the process faster and cheaper compared to ETFs’ cash settlements. ETPs need to file financial statements quarterly and annually like regular public companies. ETFs only report twice a year.
Why BlackRock chose an ETP for the UK market
BlackRock picked an ETP structure because of UK regulatory requirements. Bitcoin isn’t classified as a security, so a spot Bitcoin product didn’t need investment company registration. The company registered under different securities regulations as an ETP instead. This lets BlackRock give UK investors Bitcoin exposure through familiar exchange mechanisms.
How custody and regulation differ between the two
BlackRock’s Bitcoin ETP moves assets to Coinbase Custody International, which keeps Bitcoin in cold storage offline. This custody setup uses multi-party computation and physical security measures. Both structures give regulated Bitcoin exposure through different legal frameworks. The tax implications vary since BlackRock’s ETP is set up as a grantor trust for tax purposes.
Who benefits from the new crypto investment access?
Recent changes in regulations have created new possibilities for UK investors. The country’s crypto investor numbers could reach four million next year.
Retail investors gain regulated exposure
British savers can now include crypto ETPs in their tax-efficient ISAs and SIPPs. This offers better tax benefits than owning crypto directly. New crypto investors will likely grow by 21% in the next year. Young people stand to benefit most from these changes. Half of 18-24 year olds and 49% of 25-34 year olds might invest in crypto ETPs.
Institutional investors expand UK presence
A Coinbase/EY-Parthenon survey reveals that 86% of European and UK institutions plan to buy more crypto in 2025. Half of these investors aim to put over 5% of their managed assets into cryptocurrencies. About 57% would rather invest through registered vehicles like ETPs.
Other issuers join the market: 21Shares, WisdomTree, Bitwise
BlackRock isn’t alone in this market. Several competitors have launched their products:
- 21Shares released four ETPs in its “Core” range with fees at just 0.10%
- WisdomTree’s Bitcoin and Ethereum ETPs come with 0.15% and 0.35% fees
- Bitwise has cut its Core Bitcoin ETP fee to 0.05%, making it the cheapest option available
What this means for UK’s crypto adoption
The UK now matches other major markets like the US, Canada and EU countries. The market could grow by 20%, making the UK Europe’s third-largest crypto investment hub.
Conclusion
BlackRock’s launch of the iShares Bitcoin ETP on the London Stock Exchange marks a game-changing moment for UK cryptocurrency investment. The FCA has lifted its four-year ban on crypto investment products for retail investors at the perfect time. British investors can now buy Bitcoin through regulated channels without dealing with direct cryptocurrency ownership hassles.
UK investors need to understand the key difference between ETPs and ETFs. Both let you invest in Bitcoin, but ETPs work as debt securities backed by physical Bitcoin and settle faster. ETFs follow different rules as investment companies. BlackRock picked the ETP structure to meet UK regulations and allow more people to invest.
The new rules have created opportunities in the investment world. Retail investors are the biggest winners – they can now hold crypto investments in tax-efficient ISAs and SIPPs. Institutional investors show great interest too, with 86% planning to boost their crypto holdings this year. The fees are very competitive – BlackRock offers a temporary 0.15% expense ratio while 21Shares and Bitwise have even lower rates. This makes it attractive for investors who watch their costs.
The UK now matches international markets, which shows a more mature approach to crypto regulation. Some limits still exist – especially for derivatives and FSCS protection. Yet the market looks strong, with almost four million crypto investors expected next year. BlackRock’s Bitcoin ETP launch isn’t just another product – it has changed how British investors can buy digital assets through familiar, regulated investment options.
Key Takeaways
BlackRock’s Bitcoin ETP launch on the London Stock Exchange represents a pivotal shift in UK cryptocurrency investment, offering retail investors regulated access to Bitcoin for the first time since 2021.
• The FCA’s ban reversal allows UK retail investors to hold crypto ETPs in tax-efficient ISAs and SIPPs, aligning Britain with US and EU markets.
• BlackRock’s iShares Bitcoin ETP (IB1T) offers accessible Bitcoin exposure from just £11 with competitive 0.15% fees until 2026.
• ETPs differ from ETFs by functioning as debt securities with faster Bitcoin settlement, making them ideal for UK regulatory requirements.
• UK crypto adoption is projected to reach nearly 4 million investors next year, with 86% of institutions planning increased allocations.
• Multiple providers including 21Shares, WisdomTree, and Bitwise are launching competing products, creating a competitive fee environment for investors.
This regulatory shift transforms how British investors can access digital assets through familiar, regulated investment vehicles whilst maintaining important consumer protections.
FAQs
What is BlackRock’s new Bitcoin ETP and how does it work?
BlackRock’s iShares Bitcoin ETP (IB1T) is a regulated investment product that provides direct exposure to Bitcoin. It is physically backed by Bitcoin held in custody by Coinbase, allowing investors to gain exposure to the cryptocurrency’s price without managing private keys or digital wallets themselves.
How can UK retail investors access the Bitcoin ETP?
UK retail investors can now purchase the Bitcoin ETP through standard investment accounts on the London Stock Exchange. The minimum investment starts at approximately £11, making it accessible to investors with modest budgets. It can also be held within tax-efficient wrappers such as ISAs and SIPPs.
What are the key differences between a Bitcoin ETP and ETF?
While both provide Bitcoin exposure, ETPs function as debt securities backed by physical Bitcoin with faster settlement times. ETFs, on the other hand, operate as investment companies under different regulatory frameworks. BlackRock chose the ETP structure to comply with UK regulations and enable broader market participation.
What are the fees associated with BlackRock’s Bitcoin ETP?
The iShares Bitcoin ETP has a competitive total expense ratio (TER) of 0.15% annually, which includes a temporary fee waiver until the end of 2025. From January 2026, this expense ratio will increase to 0.25%
How does the regulatory change impact cryptocurrency adoption in the UK?
The FCA’s decision to lift the ban on crypto ETPs for retail investors is expected to boost UK crypto adoption significantly. Projections suggest the number of UK crypto investors could approach four million over the next year, with a 21% increase in first-time crypto investors anticipated in the coming 12 months.