BlackRock Debuts First Bitcoin ETP in London as FCA Lifts Crypto Restrictions

 

BlackRock Launches First Bitcoin ETP in London Following FCA Crypto Ban Lift

London’s financial markets are witnessing a historic milestone as BlackRock, the world’s largest asset manager, listed its first Bitcoin Exchange-Traded Product (ETP) on the London Stock Exchange (LSE). The product, trading under the ticker IB1T, represents a pivotal step in bridging traditional finance with the growing digital asset sector, giving retail investors a regulated avenue to gain exposure to Bitcoin without directly holding the cryptocurrency.

Breaking Barriers in UK Crypto Investment

For years, UK retail investors faced strict regulatory limitations preventing them from purchasing crypto ETFs and similar investment vehicles. The Financial Conduct Authority (FCA) maintained a ban on crypto-linked investment products due to concerns over volatility, market manipulation, and investor protection. In 2025, however, the regulatory climate shifted. Recognizing the maturation of the cryptocurrency market and improved institutional safeguards, the FCA lifted the ban, enabling firms like BlackRock to offer digital asset products to retail investors in a regulated environment.

Source: Bitcoinsensus X

This development is significant. The UK is projected to see more than four million adult cryptocurrency owners by 2026, and the availability of products such as IB1T allows newcomers to participate in the crypto market safely, through a platform they are familiar with: the stock exchange. Analysts view the BlackRock ETP as a critical instrument to normalize crypto investing, aligning with mainstream financial practices and bolstering investor confidence.

About the BlackRock Bitcoin ETP

The iShares Bitcoin ETP is structured to track the price of Bitcoin, allowing investors to gain exposure to its performance without the need to manage wallets, private keys, or security protocols themselves. It is fully physically backed, meaning every share corresponds to actual Bitcoin stored securely. Custody is managed by Coinbase, one of the largest crypto custodians globally, employing institutional-grade security measures, including cold storage, multi-party computation, and segregated daily transfers.

Source: BitcoinMagazines X

Key Features of IB1T Include:

• Ticker: IB1T

• Exchange: London Stock Exchange

• Custodian: Coinbase

• Backing: Fully physically backed, each share represents actual Bitcoin

• Expense Ratio: 0.15% per year until 31 December 2025; 0.25% per year thereafter

The ETP addresses one of the major hurdles for new crypto investors: technical complexity. By providing a regulated, exchange-listed product, BlackRock removes the challenges of purchasing, storing, and securing Bitcoin directly.

How ETPs Work

Exchange-Traded Products (ETPs) function similarly to shares on a stock market. They track the value of an underlying asset—in this case, Bitcoin—without requiring investors to directly hold it. This provides a simpler entry point for retail and institutional investors alike, offering exposure to cryptocurrencies in a familiar investment vehicle.

Institutional Adoption and Market Implications

BlackRock’s move is widely interpreted as a signal of growing institutional acceptance of cryptocurrencies in Europe. The product provides a bridge for traditional finance to enter the digital asset space while maintaining regulatory oversight and risk controls. Analysts predict that this ETP could attract significant inflows from institutional investors, pension funds, and retail traders seeking exposure to Bitcoin within a regulated framework.

Although initial trading volumes on IB1T were modest, market observers expect demand to grow steadily, reflecting the pattern seen in the U.S. with BlackRock’s previously launched Bitcoin ETF, which has amassed over $100 billion in assets under management.

The Role of Custody in Crypto ETPs

Security remains a core concern for any crypto-linked investment. BlackRock has partnered with Coinbase, leveraging its robust custody infrastructure to ensure institutional-grade security. Coinbase employs cold storage protocols, daily wallet segregation, and multi-party computation to protect the underlying assets. This approach provides investors with confidence that their exposure to Bitcoin is safe from online threats and operational risks.

Regulatory Confidence and UK Market Growth

The FCA’s decision to lift the ban on crypto-linked products underscores the regulator’s confidence in the maturation of the cryptocurrency ecosystem. It also highlights the importance of institutional involvement in enhancing market integrity. With regulatory oversight, products like IB1T allow investors to navigate the market with reduced risk while increasing transparency and market stability.

Experts argue that the launch of BlackRock’s ETP in London could catalyze further innovation in the UK financial sector, potentially prompting other asset managers and fintech firms to develop crypto-based investment products. This aligns with a broader trend observed globally, where leading financial institutions are integrating digital assets into conventional portfolios to meet growing investor demand.

Potential Market Impact

The introduction of IB1T is expected to have multiple effects on the UK crypto landscape:

1. Broadened Access: Retail investors can participate in the Bitcoin market through a familiar stock exchange interface.

2. Risk Mitigation: The product provides a safer entry into crypto investing without the need to manage private keys or digital wallets.

3. Institutional Momentum: Encourages other asset managers to explore crypto-linked products, potentially increasing market liquidity.

4. Price Influence: Large-scale inflows from institutional investors could positively impact Bitcoin price dynamics in the UK market.

Conclusion

BlackRock’s launch of the iShares Bitcoin ETP marks a turning point in the integration of cryptocurrencies into mainstream financial markets in the United Kingdom. By providing retail investors with a regulated, physically-backed product, the company has reduced barriers to entry, enhanced investor protection, and signaled growing institutional acceptance of Bitcoin.

As London positions itself as a hub for regulated digital assets, the launch of IB1T is likely to inspire further innovation, potentially paving the way for additional cryptocurrency investment products across Europe. The combination of regulatory clarity, institutional oversight, and mainstream access may well accelerate the adoption of Bitcoin, offering a secure, practical gateway for investors seeking exposure to the world’s leading digital currency.

BlackRock’s initiative exemplifies how traditional finance and blockchain innovation can coexist, creating opportunities for investors while driving the next phase of digital asset adoption globally.

Writer @Ellena

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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