BlackRock Lists iShares Bitcoin ETP on LSE After FCA Lifts ETN Ban
BlackRock has listed its iShares Bitcoin ETP on the London Stock Exchange after the FCA lifted its four-year ban on crypto exchange-traded notes (ETNs). Priced around $11 per unit, the physically backed Bitcoin ETP allows UK retail investors regulated access to BTC through traditional brokerage accounts without holding the asset themselves.
Under the scheme, bitcoins are secured by licensed custodians—primarily Coinbase—with daily transfers from trading wallets into segregated cold storage. The product builds on BlackRock’s US spot Bitcoin ETF, extending its $85bn digital asset lineup under an institutional-grade infrastructure.
The FCA, while still warning of crypto volatility and maintaining a retail ban on derivatives, now endorses blockchain-based fund tokenisation and will monitor market risks. Domestic interest in digital assets has climbed, with a 12% increase in investments since 2022 and projections suggesting four million UK crypto investors within a year.
The launch marks a key step for mainstream Bitcoin adoption, potentially driving new inflows and reducing counterparty and rehypothecation risk.
Bullish
The listing of a physically backed Bitcoin ETP on the LSE under FCA oversight is likely bullish for BTC. In the short term, regulated access via a low-cost ETP can attract fresh retail inflows, reducing friction and boosting demand. Over the long term, the sanctioning of blockchain-based tokenisation and the extension of BlackRock’s institutional-grade infrastructure supports market maturation and legitimacy, potentially stabilizing liquidity and elevating Bitcoin’s adoption curve. Historical precedents with US spot ETFs show new asset vehicles often coincide with positive price trends. Moreover, reduced counterparty and rehypothecation risks enhance investor confidence, further underpinning a constructive outlook.