Following the UK's decision to lift the ban on crypto exchange-traded notes (ETNs), BlackRock has launched its iShares Bitcoin ETP (IB1T) on the London Stock Exchange (LSE), opening the door for UK retail investors to access Bitcoin exposure through a regulated investment vehicle. The launch comes after the Financial Conduct Authority (FCA) lifted its four-year ban on crypto ETNs on October 8, 2025, a move predicted to potentially grow the UK crypto market by 20%.
The iShares Bitcoin ETP will allow investors to gain exposure to Bitcoin without directly holding or trading the cryptocurrency. The product is structured as a Bitcoin-linked security, enabling investors to purchase fractions of Bitcoin through units starting at approximately $11. BlackRock's ETP is fully backed by Bitcoin, with Coinbase providing custody services. To ensure security, Coinbase transfers Bitcoin from the trading wallet into segregated, offline cold storage wallets at the end of each trading day, utilizing its institutional-grade security framework.
Jane Sloan, EMEA head of global product solutions at BlackRock, stated that the iShares Bitcoin ETP unlocks a more secure gateway to digital assets via traditional investment platforms. She projects the UK crypto investor base to approach four million in the coming year. BlackRock's research indicates that UK crypto adoption has been rising at an annualized rate of 12% since 2022, and forecasts a further 21% increase in first-time UK crypto investors over the next 12 months. This would place the UK third in Europe for crypto investment growth.
The iShares Bitcoin ETP has a total expense ratio (TER) of 0.15% per year, which includes a temporary waiver that lasts until December 31, 2025. From January 1, 2026, the TER will increase to 0.25% annually.
BlackRock's move is part of a broader trend, with other firms like 21Shares and Bitwise also launching crypto ETPs for UK retail investors following the FCA's decision. 21Shares has made four of its flagship crypto ETPs accessible via the LSE, including the 21Shares Bitcoin ETP (ABTC), 21Shares Core Bitcoin ETP (CBTC), 21Shares Ethereum Staking ETP (AETH), and 21Shares Ethereum Core Staking ETP (ETHC).
Russell Barlow, CEO of 21Shares, welcomed the FCA's decision, stating that it begins to level the playing field with Europe, where retail investors have long had access to regulated crypto ETPs. He added that access to Bitcoin and Ethereum is only the first step in building a more comprehensive and innovation-friendly framework for the UK.
The FCA's initial ban in 2021 was motivated by concerns about the price volatility of crypto assets, the immaturity of the markets, and the potential for investors to lose substantial sums of money. However, the FCA has since re-evaluated its position, citing the evolution of the market, the increased understanding of digital asset products, and the implementation of regulatory regimes related to crypto assets.
The UK government will allow crypto ETNs to be held in registered pension schemes from October 8, 2025, and will open up access for Stocks & Shares Individual Savings Accounts (ISA) from April 2026. Individual investors will be able to access the products using standard brokerage accounts and tax-efficient Stocks and Shares ISA and SIPP accounts until April 2026, at which time they will only be accessible for new investment through Innovative Finance ISAs.
While easing restrictions on ETPs, the FCA has maintained its ban on retail access to crypto asset derivatives, but will continue to monitor market developments. The BlackRock Investment Institute (BII) suggests that investors who can tolerate Bitcoin's volatility may consider allocating 1-2% of their diversified portfolios to the asset class.
