BlackRock has launched its iShares Bitcoin ETP (IB1T) on the London Stock Exchange today. With this, it is providing a regulated exchange-traded product (ETP) for UK-based institutional clients to gain exposure to Bitcoin.
According to a report from FT Adviser, the ETP offers investors an exposure to Bitcoin without them needing to hold the assets directly. The product is physically backed by Bitcoin held in custody through Coinbase Prime, a leading institutional digital asset custodian.
FCA Lifts Ban on Investment Assets
The launch follows the UK’s Financial Conduct Authority (FCA) lifting its ban on some Bitcoin-based investment products. Institutions like Blackrock have taken this opportunity to give British investors an easy and more regulated access to digital assets.
According to BlackRock, the product is built on “institutional-grade infrastructure” and offers investors a simple gateway to digital assets through traditional trading platforms.
As the UK crypto investor base is projected to approach four million over the next year, today’s listing of ETPs like iShares Bitcoin ETP unlocks a securer gateway to digital assets through traditional investment platforms.
Jane Sloan, EMEA Head of Global Product Solutions at BlackRock
She also added that the product enables investors to participate in bitcoin markets “with the confidence of robust custody and regulatory oversight.”
Growing Demand for Crypto Investments in the UK
The company stated that demand for cryptocurrency among UK investors has grown by 12% since 2022. Research from its ‘People & Money: The Next Wave of Crypto Investors in the UK’ report predicts that the number of first-time crypto investors will grow by 21% over the next 12 months. The UK is also ranked third in Europe for growth in crypto investments.
According to the Blackrock website, the ETP has a total expense ratio (TER) of 15 basis points annually until December 31, 2025, and 25 basis points thereafter.