BlackRock Launches Bitcoin ETP as UK Opens Crypto Market to Retail Investors

This launch came 12 days after regulators lifted a four-year ban that blocked everyday investors from buying crypto through traditional stock markets.

BlackRock’s iShares Bitcoin ETP, trading under ticker IB1T, joins similar products from 21Shares, WisdomTree, and Bitwise on the exchange. For the first time since 2021, UK residents can now invest in Bitcoin without opening a crypto wallet or dealing with cryptocurrency exchanges directly.

What Changed in UK Crypto Rules

The Financial Conduct Authority originally banned these products in January 2021. Officials worried that crypto’s wild price swings would hurt regular investors who didn’t understand the risks. But the market has changed significantly since then.

David Geale, the FCA’s executive director of payments and digital finance, explained the agency’s shift: “Since we restricted retail access to cETNs, the market has evolved, and products have become more mainstream and better understood.”

The numbers back this up. About 12% of UK adults now own cryptocurrency—up from just 4% in 2021, according to FCA research. That’s roughly 7 million people. Bitcoin’s price has also jumped over 325% since the ban started, when it traded around $29,000.

How BlackRock’s Product Works

The iShares Bitcoin ETP charges 0.15% in annual fees through the end of 2025. After that, fees increase to 0.25% per year. Units start at about $11, making it accessible to small investors.

BlackRock holds all the actual Bitcoin through Coinbase in secure offline storage. The company updates these holdings at the end of each trading day. This means investors own a piece of real Bitcoin, not just a contract betting on its price.

The product already existed in Europe since March 2025, trading on exchanges in Germany, France, and the Netherlands. It holds roughly €550 million in assets. Now UK investors can access it through regular brokerage accounts, including tax-advantaged ISAs and pension accounts.

BlackRock manages over $13 trillion globally. Its US Bitcoin ETF holds $85.5 billion, making it the world’s largest crypto investment fund by far.

Competition Heats Up on Launch Day

BlackRock wasn’t alone. Three other companies launched crypto products the same day, creating immediate competition.

21Shares listed four products tracking Bitcoin and Ethereum. Their “Core” offerings charge just 0.10% in fees—significantly less than BlackRock’s. The Swiss company already captured 70% of institutional crypto trading on the London Stock Exchange before retail access opened.

WisdomTree launched Bitcoin and Ethereum products charging 0.15% and 0.35% respectively. Bitwise went even lower, temporarily dropping its Core Bitcoin ETP fee to 0.05% for six months—the lowest rate among all providers.

Russell Barlow, CEO of 21Shares, called it “a landmark step for the UK market and for everyday investors who, for years, have been excluded from regulated crypto products.”

Tax Benefits Drive Investor Interest

One major advantage separates these products from buying crypto directly: taxes. Investors can hold crypto ETPs in stocks and shares ISAs, where gains aren’t taxed. They also work in self-invested personal pensions, offering tax relief on contributions.

However, this ISA benefit has an expiration date. After April 6, 2026, crypto ETPs will only qualify for Innovative Finance ISAs—not regular stocks and shares ISAs. This gives investors about six months to take advantage of the current tax treatment.

Research from IG Group predicts the UK crypto market could grow 20% following these changes. Their survey found 30% of UK adults would consider investing through these new products.

Young people show the strongest interest. Half of those aged 18-24 said they’d consider crypto ETP investments, along with 49% of people aged 25-34.

UK Plays Catch-Up with Global Markets

The UK fell behind other countries during its four-year ban. European exchanges handled €26 billion in crypto ETN trading in 2024. UK volumes represented just 0.59% of European activity—only £624,000 daily on average.

The United States approved Bitcoin ETFs in January 2024. Those products now manage around $150 billion in assets after less than two years. The UK and US recently formed a joint task force to align their crypto policies going forward.

Jane Sloan, BlackRock’s EMEA Head of Global Product Solutions, noted that UK crypto adoption has grown 12% annually since 2022. Research suggests first-time crypto investors could increase another 21% over the next year, making the UK third in Europe for crypto investment growth.

The FCA still bans crypto derivatives like futures and options for regular investors. Officials say those products remain too risky. The regulator is developing broader rules for stablecoins, trading platforms, and custody services, expected to roll out in 2026.

The Bottom Line

UK investors now have multiple regulated options to add Bitcoin exposure to their portfolios without the complexity of managing digital wallets. Competitive fees ranging from 0.05% to 0.25% make these products affordable. The ability to use ISAs and pensions adds meaningful tax advantages that direct crypto purchases can’t match. With Bitcoin recently trading above $122,000, institutional-grade access through traditional investment accounts marks a significant step toward mainstream crypto adoption in one of the world’s major financial centers.