BlackRock Launches ETP in UK That Provides Exposure to Bitcoin
Global asset manager BlackRock has formally launched the iShares Bitcoin ETP in the United Kingdom.
The product debuted on the London Stock Exchange and offers UK investors access to Bitcoin (BTC) markets without requiring custody of the cryptocurrency, marking a significant milestone for regulated crypto investment.
Bitcoin-Linked ETP Simplifies Crypto Access
The iShares Bitcoin ETP is a Bitcoin-linked security that allows investors to purchase fractional units of Bitcoin, starting around $11.
- The ETP tracks the price of BTC while operating within a regulated framework.
- Retail investors can gain exposure to Bitcoin via traditional brokers rather than crypto exchanges.
BlackRock is the largest issuer of Bitcoin-linked investment products, including the iShares Bitcoin ETF with over $85 billion in assets under management (AUM).
Also Read : Crypto Firms Risk Market Integrity by Circumventing MiCA Rules, EU Regulators Warn
UK FCA Relaxes Rules on Crypto Investment Products
The FCA has lifted restrictions on crypto-linked exchange-traded products (ETPs), paving the way for launches like BlackRock’s.
- On October 9, the FCA ended a four-year ban on crypto exchange-traded notes (ETNs).
- Investors can now purchase these instruments through FCA-approved exchanges.
David Geale, FCA Executive Director of Payments and Digital Finance, explained that crypto-linked products are now better understood and integrated into investor portfolios. ETNs and ETPs operate similarly to traditional securities, with regulated custodians ensuring security and investor protection.
Note: Retail restrictions on crypto derivatives remain in effect, and the FCA continues to monitor risk exposure.
Driving Innovation Through Blockchain Tokenization
The FCA is also supporting innovation by allowing asset managers to adopt blockchain technology for fund tokenization.
- Blockchain enables asset managers to revolutionize asset management and digital finance.
- BlackRock’s Bitcoin ETP demonstrates how traditional finance is bridging with the digital asset ecosystem, signaling a resurgence of institutional crypto adoption.
