In a significant move for the cryptocurrency market, BlackRock has officially launched its iShares Bitcoin Exchange-Traded Product (ETP) on the London Stock Exchange (LSE). This development follows the Financial Conduct Authority’s (FCA) recent decision to relax restrictions on crypto-linked investment products, paving the way for increased access for retail investors.
The new ETP, identified by the ticker IB1T, offers a streamlined entry point into Bitcoin for those who prefer not to engage directly in trading or storing the cryptocurrency. Investors can gain exposure to Bitcoin through this product, which is fully physically backed, meaning all the underlying Bitcoin is securely held in custody via Coinbase. BlackRock aims to alleviate the technical complexities often associated with cryptocurrency ownership, shifting the responsibility of secure storage to themselves as the issuer.
In a statement, BlackRock highlighted that Coinbase deploys a robust security strategy encompassing physical security measures, multiparty computation, and regular transfers to segregated cold storage wallets. This ensures a level of protection typically reserved for institutional investors. Jane Sloan, EMEA Head of Global Product Solutions at BlackRock, articulated that the iShares Bitcoin ETP leverages an established partnership with Coinbase, granting UK investors a trustworthy and secure introduction to digital assets via well-known trading platforms.
As forecasts suggest that UK crypto ownership could surge to nearly four million adults within the next year, the timing of this launch appears to be fortuitous. The ETP also boasts a competitive total expense ratio (TER) of 15 basis points per annum, which includes a temporary fee waiver that will last until the end of 2025. After this period, the TER is expected to rise to 25 basis points.
From a strategic viewpoint, the BlackRock Investment Institute recommends that investors possessing appropriate governance structures and risk tolerance consider a modest allocation—between 1% and 2%—to Bitcoin within diversified multi-asset portfolios. This advice takes into account the dual nature of Bitcoin, highlighting both its potential for significant gains and its inherent volatility.
The launch comes on the heels of a substantial regulatory shift in the UK, characterized by the FCA’s decision to lift a four-year ban on retail access to cryptocurrency-linked exchange-traded notes (ETNs) and ETPs. Previously, retail investors were restricted from these financial products due to concerns regarding market volatility and consumer risks. However, the FCA has suggested that the market’s maturation has led to the development of institutional-grade custodians and enhanced liquidity, making such investments more appropriate for regulated environments.
While the retail ban on crypto derivatives remains in place, the FCA has signaled an ongoing commitment to closely monitor high-risk investments and has expressed interest in exploring fund tokenization initiatives within the asset management arena.
The UK launch of the iShares Bitcoin ETP reflects a parallel success to BlackRock’s offerings in the United States, where its flagship iShares Bitcoin Trust ETF (IBIT) has grown to manage over $100 billion in assets. This product has successfully attracted a mix of retail and institutional investors through traditional brokerage channels. Notably, in the third quarter of 2025, BlackRock saw a remarkable $17 billion in net inflows into its digital asset products, demonstrating a robust appetite for regulated cryptocurrency exposure among investors.
