- ETP reflects the price of bitcoin and trades on the London Stock Exchange.
- The UK aims to become a global hub for regulated digital asset products.
- The FCA has approved tokenisation of investment funds using blockchain technology.
Investment giant BlackRock has launched its first bitcoin exchange-traded product (ETP) in the United Kingdom, marking a significant step toward closer integration between traditional finance and the crypto sector.
The launch follows the Financial Conduct Authority’s (FCA) decision to relax restrictions on crypto investment vehicles, allowing investors to gain exposure to bitcoin without owning it directly.
This move not only broadens access to digital assets for UK investors but also highlights growing alignment between global asset managers and regulators as they adapt to an evolving financial landscape.
BlackRock’s bitcoin ETP debuts on the London Stock Exchange
iShares Bitcoin ETP, now listed on the London Stock Exchange, is designed to track the price of bitcoin and provide exposure within a regulated structure.
The product allows investors to buy fractional exposure to bitcoin through units starting at roughly $11, making participation in the asset class more accessible.
Unlike holding bitcoin directly, investors can trade the ETP through standard brokerage accounts, avoiding the complexities of digital wallets and private key management.
The underlying assets are securely held by a regulated custodian, ensuring compliance and oversight under UK financial rules.
BlackRock’s UK-listed ETP builds on the firm’s earlier success with bitcoin exchange-traded funds (ETFs) in the United States, which have attracted tens of billions in net assets.
It also expands BlackRock’s European footprint, complementing listings in Switzerland, Paris, Amsterdam and Frankfurt.
FCA relaxes rules on crypto investment products
The launch came shortly after the FCA lifted a four-year ban on crypto exchange-traded notes (ETNs) on 9 October 2025.
The regulator said UK investors can now access such products via approved exchanges, reflecting broader acceptance of regulated crypto-linked investment options.
The decision represents a turning point in UK crypto policy.
It indicates a shift from outright restrictions toward a more calibrated approach that balances investor protection with innovation.
The FCA announcement followed months of consultations with industry participants and international regulators.
Expanding opportunities for asset managers and investors
BlackRock’s move is expected to encourage other global asset managers to follow suit as the UK repositions itself as a post-Brexit hub for financial innovation.
FCA approval has opened the door for firms such as VanEck, DWS and WisdomTree to explore similar product launches.
For retail investors, these products offer exposure to bitcoin price movements through familiar investment wrappers.
They remove the need to manage crypto wallets or trade on unregulated exchanges, while allowing investments through ordinary platforms.
The regulator’s decision also aligns with the UK Treasury’s ambitions to make the country a global center for digital assets.
It supports ongoing efforts to integrate blockchain into traditional finance and paves the way for tokenised funds and blockchain-based asset management in the future.
Crypto risks and the future of tokenisation in the UK
Even with looser rules, the FCA reiterated that its ban on crypto derivatives for retail clients will remain in place.
While ETPs operate within a regulated framework, exposure to bitcoin still carries the price volatility and market risks inherent to the underlying asset.
Separately, the UK is exploring wider applications of blockchain across financial services.
On 14 October 2025, the FCA announced new provisions allowing asset managers to use distributed ledger technology for fund tokenisation.
The change aims to promote innovation and efficiency, signalling that regulators see long-term potential in blockchain applications beyond cryptocurrencies.
By enabling controlled access to bitcoin and supporting tokenisation, the UK is gradually laying the groundwork for a digital financial ecosystem where traditional and decentralized finance coexist.
BlackRock’s ETP represents a major milestone in that transition and sets the stage for more institutional crypto products to appear in one of the world’s leading financial markets.