BlackRock has introduced a new Bitcoin exchange-traded product (ETP) in the UK after the Financial Conduct Authority (FCA) relaxed its restrictions regarding crypto investment products. On Monday, the asset manager announced 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, allowing investors to purchase fractions of Bitcoin (BTC) with units starting around $11.
The ETP is intended to replicate Bitcoin prices while operating within a regulated environment, enabling investors to enter the crypto market using standard brokerage accounts. This allows retail investors in the UK to gain Bitcoin exposure without the need to hold or trade the asset directly on cryptocurrency exchanges.
BlackRock has established itself as a leading issuer of Bitcoin-linked ETPs, with its iShares Bitcoin ETF boasting net assets exceeding $85 billion according to SoSoValue.
The FCA’s Eased Approach to Crypto-Investment Vehicles
This development follows the UK’s recent moves to modify its stance on various crypto-linked ETPs. On October 9, the FCA lifted its four-year moratorium on crypto exchange-traded notes (ETNs), stating that these products can now be accessed through FCA-approved exchanges in the UK.
David Geale, the FCA’s Executive Director of Payments and Digital Finance, noted that the market has matured since the restrictions were put in place, with crypto products becoming more mainstream and comprehensible.
Though the FCA has softened its position on ETPs, it has stated that the retail ban on crypto asset derivatives will still remain in effect. The regulatory body will continue monitoring the market and may reassess its approach towards these high-risk investments in the future.
Additionally, the UK has opened doors for asset managers to employ blockchain technology for fund tokenization, with the aim of fostering innovation and growth in asset management. On October 14, the FCA announced its belief that tokenization holds potential for significant transformation in the asset management sector.
