BlackRock Launches Bitcoin ETP in London
On Monday, BlackRock introduced a Bitcoin exchange-traded product (ETP) on the London Stock Exchange. This marks a significant moment, especially since several similar offerings have emerged following the Financial Conduct Authority’s decision to lift the retail investment ban that was in place since 2021.
The newly launched iShares Bitcoin ETP trades under the ticker IB1T. Investors can now also explore options from firms like 21Shares, WisdomTree, and Bitwise, enabling them to gain exposure to Bitcoin without the need to actually hold the cryptocurrency themselves.
BlackRock’s products had previously been available in other European markets, including Xetra and Euronext Amsterdam and Paris, where they were listed earlier this year.
21Shares, based in Switzerland, has rolled out four key cryptocurrency exchange-traded notes (ETNs). These encompass not just Bitcoin (ABTC) but also Ether (AETH) staking products, along with two low-fee “core” products featuring a mere 0.10% management fee: CBTC and ETHC.
“Today’s launch is a landmark step for the UK market and for everyday investors who have long been excluded from regulated crypto products,” remarked Russell Barlow, CEO of 21Shares, in a press release. He noted that this marks a move toward leveling the playing field with Europe.
WisdomTree’s Physical Bitcoin and Physical Ethereum ETPs, which were initially accessible only to affluent investors, will now be available to a wider audience through various UK-regulated investment platforms starting this week, according to the company.
The London Stock Exchange currently lists four ETPs, with two each corresponding to Bitcoin and Ethereum, as announced on Monday. In the next six months, the management fees for the Core Bitcoin ETP (BTC1) will be reduced from 20 basis points to just 5.
BlackRock, which oversees more than $13 trillion in assets globally, has seen considerable growth in its cryptocurrency products. The firm’s flagship Bitcoin ETF, iShares Bitcoin Trust (IBIT), boasts net assets of $85.5 billion, establishing it as the largest Bitcoin spot ETF, followed by Fidelity’s FBTC at $21.9 billion.
In summary, the launch of BlackRock’s Bitcoin ETP and the subsequent offerings from other companies signals a new era for crypto investments in the UK, providing more structured and regulated access for retail investors.
