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    BlackRock Introduces Bitcoin ETP in the UK Following FCA Ban Lift

    Ethan CarterBy No Comments2 Mins Read
    1760961990

    BlackRock has introduced a Bitcoin-related exchange-traded product (ETP) in the UK following the Financial Conduct Authority’s (FCA) decision to relax restrictions on crypto investment vehicles.

    As of Monday, the asset manager’s website indicated that the iShares Bitcoin ETP is now listed on the London Stock Exchange. According to the Sunday Times, this product is structured as a Bitcoin-linked security, enabling investors to acquire fractions of Bitcoin (BTC) with units starting around $11.

    The ETP aims to replicate BTC prices while operating within a regulated framework, letting investors engage with the crypto market via traditional brokerage accounts. It enables retail investors in the UK to gain exposure to Bitcoin without directly owning the asset or trading on crypto exchanges.

    BlackRock is a leading issuer of Bitcoin-linked ETPs, with the company’s iShares Bitcoin exchange-traded fund (ETF) boasting net assets exceeding $85 billion, as reported by SoSoValue.

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    iShares Bitcoin ETP listings include the London Stock Exchange. Source: BlackRock

    UK FCA relaxes regulations on crypto-linked investment vehicles

    This development follows the UK’s recent easing of its position on certain crypto-linked ETPs. On October 9, the FCA lifted its four-year prohibition on crypto exchange-traded notes (ETNs), stating that investors can access these products through FCA-approved exchanges in the UK.

    David Geale, FCA executive director of payments and digital finance, noted that since they restricted retail ETN access, the market has evolved, becoming more mainstream and better understood.

    A crypto ETN is traded like other securities, with its underlying assets securely held by regulated custodians.

    Related: Bitcoin ETFs shed $1.2B in red week, but Schwab remains bullish

    While the FCA has softened its stance on ETPs, it has maintained its ban on retail trading of crypto asset derivatives. However, the FCA indicated it will monitor the market and reassess its approach to these “high-risk investments.”

    In addition to ETNs, the UK has also allowed asset managers to implement blockchain technology for fund tokenization.

    On October 14, the regulator announced that this initiative aims to foster innovation and growth within asset management, acknowledging that tokenization has the “potential to drive fundamental changes in the sector.”