BlackRock plans to introduce its iShares Bitcoin ETP on the London Stock Exchange as the UK FCA removes its retail ban on crypto exchange-traded notes, effective October 8, 2025.
BlackRock's entry enhances UK investors' Bitcoin access, potentially driving institutional flows and price increases, with market analysts observing heightened liquidity and interest in Bitcoin-linked DeFi protocols.
UK Financial Conduct Authority Lifts Retail Ban on Crypto Exchange-Traded Notes
The UK Financial Conduct Authority has formally lifted its ban on retail crypto exchange-traded notes, allowing BlackRock to launch its iShares Bitcoin ETP in the UK. This move signifies a regulatory milestone for direct Bitcoin investment options.
BlackRock's Strategic Entry into the UK Digital Asset Market
BlackRock, the world’s largest asset manager, plans to list the ETP on the London Stock Exchange. This action marks an evolution in their approach to digital assets, aligning with Larry Fink's statements about blockchain's impact on finance. Larry Fink, CEO of BlackRock, stated, "Blockchain and crypto assets could redefine the whole landscape."
Anticipation of Bitcoin Price Surge and Increased Market Activity
The launch may potentially drive Bitcoin price movements, with BTC currently trading above $125,000. The market expects increased trade volumes and higher total value locked for BTC-related DeFi projects in the UK.
Institutional and retail investors could see broader access to Bitcoin, coinciding with anticipated regulatory alignment with Europe and the US. This aligns with previous historical patterns where such launches contributed to significant market interest in top cryptocurrencies.
This is a significant development for Bitcoin accessibility in the UK.
Lessons from BlackRock's US Spot Bitcoin ETF Success
The US approval of a Spot Bitcoin ETF by BlackRock in 2024 saw over $10 billion net inflows, establishing a pattern of price rises and increased trading volume. Similar patterns are anticipated with the UK ETP launch.
Industry experts foresee that BlackRock's entry into the UK market could lead to significant institutional inflows into Bitcoin, with effects resonating across related assets like Ethereum. This analysis is consistent with prior market reactions to BTC ETFs.
The US experience with BlackRock's Bitcoin ETF has paved the way for this UK launch.