- ETP mirrors the bitcoin price and trades on the London Stock Exchange.
- The United Kingdom aims to become a global hub for regulated digital asset products.
- The FCA permits tokenisation of investment funds using blockchain technology.
Investment powerhouse BlackRock has launched its first bitcoin-linked exchange-traded product (ETP) in the United Kingdom, marking a notable step toward bridging traditional finance and the crypto sector.
The move follows the Financial Conduct Authority’s (FCA) decision to ease restrictions on crypto investment products, allowing investors to gain exposure to bitcoin without holding it directly.
This launch not only broadens access to digital assets for UK investors but also highlights the growing alignment between global asset managers and regulators as they adapt to shifts in financial markets.
BlackRock’s bitcoin ETP debuts on the London Stock Exchange
iShares Bitcoin ETP, now listed on the London Stock Exchange, is structured to track the bitcoin price and provide exposure within a regulated framework.
The product enables investors to buy fractional exposure to bitcoin via units starting at around $11, making participation in the asset class more accessible.
Rather than holding bitcoin directly, investors can trade the ETP through standard brokerage accounts, avoiding the complexity of digital wallets and private key management.
The ETP’s underlying holdings are securely custodied by regulated depositaries, ensuring compliance and oversight under UK financial rules.
BlackRock’s UK-listed ETP builds on the firm’s earlier success with its U.S. bitcoin exchange-traded fund (ETF), which has accumulated more than $85 billion in net assets.
The new listing also complements BlackRock’s European offerings, joining products listed in Switzerland, Paris, Amsterdam and Frankfurt.
FCA eases restrictions on crypto investments
The launch follows the FCA’s recent removal of a four-year prohibition on crypto exchange-traded notes (ETNs), a change that allows approved exchanges to list such products for UK investors.
The regulator said the decision reflects a broader acceptance of crypto-linked investment options when provided under regulated structures.
This marks a turning point in the UK’s approach to crypto regulation, signaling a move from blanket curbs toward a calibrated policy that aims to balance investor protection with innovation.
The FCA’s announcement came after 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 consider similar launches as the UK repositions itself as a centre for financial innovation after Brexit.
The FCA’s change has opened the door for firms such as VanEck, DWS and WisdomTree to explore comparable products.
For retail investors, the ETP offers price exposure to bitcoin through a familiar investment wrapper, eliminating the need to manage crypto wallets or trade on unregulated exchanges while allowing investment through established platforms.
The regulator’s decision aligns with the UK Treasury’s aim to establish the country as a global hub 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
Despite regulatory easing, the FCA reiterated that the prohibition on crypto derivatives for retail investors remains in place.
While ETPs operate within a regulated framework, exposure to bitcoin continues to carry the same volatility and market risk associated with the underlying asset.
At the same time, the UK is exploring broader blockchain adoption across financial services.
In October 2025, the FCA introduced rules permitting asset managers to use distributed ledger technology for tokenising funds, a move designed to encourage innovation and efficiency while recognising blockchain’s potential beyond cryptocurrencies.
By enabling regulated access to bitcoin and promoting tokenisation, the UK is gradually laying the groundwork for a digital financial ecosystem where traditional and decentralised finance can coexist.
BlackRock’s ETP represents an important milestone in this transition and could pave the way for more institutional crypto products in one of the world’s leading financial markets.