After the UK Financial Conduct Authority (FCA) relaxed its ‘crypto’ product rules, BlackRock launched the iShares Bitcoin ETP on the London Stock Exchange. The exchange-traded product provides exposure to Bitcoin (BTC) without the investor holding the asset. The first units are priced at approximately $11, which allows retail investors to buy fractions of Bitcoin within a regulated framework.
The launch occurs a matter of days after the FCA has reversed its four-year ban on crypto exchange-traded notes (ETNs), specifically stating that they are now approached and understood more readily, thus allowing for a better crypto investing environment. The retail ban on crypto derivatives still remains under the FCA policies; however, the FCA also encourages innovation, including using blockchain to tokenize funds, to support growth in asset management products.
BlackRock, within the UK financial markets, stands out as one of the major issuers of Bitcoin-linked funds. The ETP allows UK investors regulated access to digital assets like Bitcoin with clear prices and low order minimums.