BlackRock Launches Bitcoin ETP for UK Retail Investors

The iShares Bitcoin ETP began trading on the London Stock Exchange on Monday, offering UK retail investors their first opportunity to access Bitcoin through BlackRock’s institutional-grade infrastructure. The securities are physically backed by Bitcoin held through Coinbase custody, with the cryptocurrency transferred from trading wallets into segregated, offline cold storage by the end of each trading day. This security protocol represents the same institutional standard that has made BlackRock’s US Bitcoin ETF so successful.

Jane Sloan, BlackRock’s EMEA head of global product, emphasized the significance of this development to the Financial Times, stating: “As the UK crypto investor base is projected to approach 4 million over the next year, today’s listing of exchange-traded products like iShares Bitcoin ETP unlock a securer gateway to digital assets through traditional investment platforms.” She added that the product “enables UK investors to gain exposure to Bitcoin with the confidence of robust custody and regulatory oversight,” highlighting the careful balance between innovation and security that has characterized BlackRock’s approach to digital assets.

The UK launch builds on the remarkable performance of BlackRock’s US spot Bitcoin ETF, which became the firm’s most profitable fund just 21 months after its debut. The fund currently manages over $87.5 billion in assets and was on track to hit the $100 billion milestone—which would have made it the youngest ETF to achieve that threshold—before last week’s market crash derailed its progress. This performance demonstrates the substantial demand for regulated Bitcoin exposure among both institutional and retail investors.

However, the launch comes during a period of significant market turbulence. According to a CoinShares report, digital asset investment products saw $513 million in outflows last week following a Binance liquidity cascade on October 10 that triggered nearly $20 billion in liquidations, including roughly $16.7 billion in long positions. This volatility underscores the challenging environment in which BlackRock is expanding its crypto offerings, though the firm’s institutional approach appears designed to provide stability amid such conditions.

Fabian Dori, Chief Investment Officer at Sygnum, told Decrypt that “the launch signals the advancing institutional acceptance of Bitcoin as an investable asset class by both major regulators and global asset managers.” He expects the UK launch to pave the way for broader crypto product offerings, noting that “in the U.S., additional ETPs beyond BTC/ETH and the first diversified crypto baskets are progressing through preparatory stages.” Dori also highlighted that “various traditional managers are expanding their digital-asset footprint, including tokenized securities in BlackRock’s case.”

The regulatory landscape remains complex, with Dori suggesting it’s reasonable to expect the Financial Conduct Authority to “proceed deliberately” by monitoring market conduct and retail outcomes before “broadening issuer participation” and considering additional crypto assets “in close alignment with other major financial centres.” This cautious approach contrasts with warnings from the Financial Stability Board, which last week cautioned that crypto firms are exploiting loopholes in fragmented global regulations, threatening financial stability as countries adopt wildly different approaches to policing the digital asset market.

The UK expansion also reflects BlackRock CEO Larry Fink’s dramatic evolution on cryptocurrency. In 2017, Fink described Bitcoin as “an index of money laundering,” but he has since completely reversed his position. Speaking to CBS last week, Fink explained that “the markets teach you, you always have to relook at your assumptions,” and now believes “there is a role for crypto in the same way there is a role for gold, that is, it’s an alternative.”

This pivot from skepticism to embracing Bitcoin as a legitimate alternative asset mirrors the broader institutional shift toward digital assets. Fink’s transformation from crypto critic to one of its most powerful advocates demonstrates how established financial institutions are adapting to the evolving asset landscape. His current position places cryptocurrency alongside gold in investors’ portfolios, representing a significant validation of Bitcoin’s role as a store of value and hedge against traditional market risks.