BlackRock launches iShares Bitcoin ETP for UK retail investors

• BlackRock has launched the iShares Bitcoin ETP on the London Stock Exchange, open to UK investors.
• The ETP is physically backed by Bitcoin held in Coinbase custody.
• The move comes amid the success of BlackRock's US spot Bitcoin ETF, which has hit several milestones since launching in January 2024.

BlackRock has launched the iShares Bitcoin (BTC) exchange-traded product (ETP) on the London Stock Exchange (LSE), allowing traditional UK retail investors to gain exposure to the price of the leading cryptocurrency.

BlackRock expands Bitcoin ETP to London Stock Exchange

Asset manager BlackRock debuted its iShares Bitcoin Trust (IB1T) on the London Stock Exchange on Monday, giving room for retail investors within the region to gain exposure to the number one cryptocurrency, according to data on the company's website.

The ETP is designed to track BTC’s price within a regulated framework, giving investors exposure through traditional brokerage accounts.

The product will be physically backed by Bitcoin held in the custody of Coinbase and will be moved daily from trading wallets on the exchange into segregated offline cold storages.

The move marks BlackRock's first Bitcoin product in the UK, with demand for crypto exposure growing among investors. Jane Sloan, EMEA head of global product solutions at BlackRock, said the listing comes as the UK’s crypto investor base is expected to reach 4 million over the next year, according to the Financial Times.

“Built on institutional-grade infrastructure, [the product] enables UK investors to gain exposure to Bitcoin with the confidence of robust custody and regulatory oversight,” Sloan told Financial Times.

IB1T's launch in the UK follows the Financial Conduct Authority’s (FCA) recent decision to lift a four-year ban on retail access to crypto exchange-traded notes (ETNs) and ETPs earlier in October.

BlackRock's Bitcoin ETP debut in the UK also comes after the strong performance of its US spot Bitcoin ETF, becoming the firm's most profitable fund nearly two years after its launch in January 2024. The fund currently holds $85.5 billion in assets under management (AUM), according to SoSoValue data.

Meanwhile, global Bitcoin products recorded net outflows of $946 million as the top crypto declined to $104,000 last week. Fueled by macroeconomic tensions, BlackRock's IBIT in the US recorded net outflows of $278 million, marking the second largest behind Grayscale's GBTC, which shed $298 million last week.

Bitcoin has since recovered above $110,000 on Monday, up nearly 2% at publication time.