- BlackRock’s iShares Bitcoin ETF is now listed on the London Stock Exchange.
- The FCA lifted its ban on crypto ETNs on October 9, allowing listings on UK-approved exchanges.
- The UK is supporting blockchain-based fund tokenization to drive innovation in asset management.
BlackRock has launched its iShares Bitcoin Exchange-Traded Product (ETP) on the London Stock Exchange, marking a significant development for crypto-linked investments in the UK. This step is after the Financial Conduct Authority (FCA) made an announcement to relax the regulation on cryptocurrency-based financial products, as the country begins to change its attitude towards digital assets. The product allows investors to acquire exposure to Bitcoin in standard trading platforms without necessarily having to purchase the cryptocurrency itself.
UK Regulator Eases Crypto Restrictions
On October 9, the FCA lifted its four-year ban on crypto exchange-traded notes (ETNs), allowing these products to be listed on FCA-recognized exchanges. This change was introduced after the regulator assessed market maturity and changes in investor understanding of such assets. David Geale, the FCA’s executive director for payments and digital finance, stated that the market has evolved since the original restrictions were implemented.
The regulator confirmed that only authorized exchanges could offer crypto-linked ETNs and ETFs. However, it maintained the ban on retail trading of crypto derivatives due to their high-risk nature. At the same time, the FCA noted it would continue monitoring the market and review its policy as needed.
ETF Offers Regulated Access to Bitcoin
The iShares Bitcoin ETF is designed to track Bitcoin’s price movements within a regulated investment framework. This allows retail investors in the UK to buy Bitcoin exposure through regular brokerage accounts. The available market reports states that, units of the ETP are priced to allow fractional Bitcoin ownership, starting from around $11. The product does not require direct interaction with crypto exchanges or wallets.
Unlike previous offerings restricted to institutional clients, this ETP opens the door to a broader group of retail investors. The underlying Bitcoin is held by regulated custodians, ensuring compliance with the UK’s financial rules.
BlackRock’s Growing Role in Crypto Investment Products
BlackRock has continued to expand its presence in the cryptocurrency investment space. Its iShares Bitcoin ETF, already active in other regions, has accumulated over $85 billion in net assets, according to SoSoValue.
The launch of the ETP in London aligns with the firm’s broader strategy of offering crypto exposure through traditional investment vehicles. Separately, on October 14, the FCA announced plans to support blockchain-based fund tokenization. This decision forms part of the UK’s push to modernize its asset management industry through technology.
