On October 20, 2025, BlackRock officially listed its iShares Bitcoin ETP (ticker: IB1T) on the London Stock Exchange, providing UK retail investors with a new, regulated pathway to gain exposure to Bitcoin through their standard brokerage accounts. This landmark event was made possible after the UK’s Financial Conduct Authority (FCA) lifted a four-year ban on the sale of crypto exchange-traded notes (cETNs) to retail investors on October 8, 2025.
A New Gateway for UK Investors
The listing of the iShares Bitcoin ETP marks a significant shift in the UK’s regulatory landscape for digital assets. The FCA’s decision reflects a view that these products have become “more mainstream and better understood” since the initial 2021 ban. David Geale, the FCA’s Executive Director of Payments and Digital Finance, stated that the move aims to provide “consumers with more choice, while ensuring there are protections in place”.
For investors, the iShares Bitcoin ETP offers exposure to Bitcoin’s price without the complexities of directly trading and holding the cryptocurrency. The ETP is 100% physically backed by Bitcoin, which is held in secure, offline “cold storage” through the institutional custody services of Coinbase. BlackRock highlights that this leverages a “multi-year integration of technology” between the two firms, offering “institutional-grade infrastructure”.
A key feature for cost-conscious investors is the product’s fee structure. The ETP comes with a Total Expense Ratio (TER) of 0.15% per annum, though it’s important to note this includes a temporary fee waiver that is scheduled to last until December 31, 2025. From January 1, 2026, the TER is set to rise to 0.25% per annum.
The Broader Market Wakes Up
BlackRock is not alone in seizing this new opportunity. The FCA’s regulatory change has triggered a wave of activity, with several other major asset managers launching or preparing their own competing products. Firms such as 21Shares, Bitwise, and WisdomTree have also announced the availability of their crypto ETPs to UK retail investors.
This influx of competition is already benefiting investors through lower costs. For example, Bitwise has significantly reduced the fee for its Core Bitcoin ETP to 0.05%, intensifying the fee war in this nascent market. This competition underscores a significant maturation of the market and provides UK investors with a growing range of choices.
What It Means for Your Portfolio
For the first time, UK retail investors can consider gaining exposure to Bitcoin within the familiar and regulated framework of the London Stock Exchange. Jane Sloan, EMEA Head of Global Product Solutions at BlackRock, noted that this “unlocks a securer gateway to digital assets through traditional investment platforms”.
However, it is crucial to be aware of the specific risks involved. Importantly, investments in these crypto ETPs are not protected by the Financial Services Compensation Scheme (FSCS), meaning investors are not covered if the product fails. The underlying assets remain highly volatile, and the products themselves carry issuer risk.
The BlackRock Investment Institute suggests that for investors with suitable risk tolerance, an allocation of up to 1-2% of a portfolio to Bitcoin could be a reasonable range, acknowledging the asset’s potential for large short-term swings.
