BlackRock has launched a Bitcoin-linked exchange-traded product (ETP) in the UK following the Financial Conduct Authority’s (FCA) decision to ease restrictions on cryptocurrency investment vehicles.
On Monday, the asset manager’s website Show The iShares Bitcoin ETP has been listed on the London Stock Exchange. According to According to the Sunday Times, the product, which is styled as a Bitcoin-linked security, will allow investors to buy fractions of Bitcoin (BTC) through units starting at around $11.
The ETP is designed to reflect BTC prices while trading within a regulated framework, allowing investors to participate in the cryptocurrency market through traditional brokerage accounts. It allows UK retail investors to gain exposure to Bitcoin without directly holding the asset or trading it on cryptocurrency exchanges.
BlackRock is one of the most successful issuers of Bitcoin-related ETFs. According to SoSoValue, the company’s iShares Bitcoin exchange-traded fund (ETF) has net assets of more than $85 billion.
The Financial Conduct Authority (FCA) in the United Kingdom is softening its stance on investment vehicles linked to cryptocurrencies
The move came weeks after the UK softened its stance on some cryptocurrency-related ETP products. On October 9, the Financial Conduct Authority (FCA) lifted its four-year ban on cryptocurrency exchange-traded notes (ETNs). The regulator said investors can access these products through Financial Conduct Authority (FCA) approved exchanges based in the UK.
David Gill, executive director of payments and digital finance at the FCA, said that since they restricted access to retail ETN, the market has evolved. The products are now more widespread and better understood, he said.
ETN cryptocurrency is traded similarly to other securities, with its underlying assets held securely by regulated custodians.
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While it has softened its stance on exchange-traded products, the regulator said the hash ban on crypto asset derivatives will remain in place. However, the FCA added that it would monitor the market and consider its approach to these “high-risk investments”.
Aside from ETNs, the UK has also moved to allow asset managers to use blockchain technology to tokenize funds.
On October 14, the regulator said the move aims to drive innovation and growth in asset management. The regulator recognized that tokenization has the “potential to fundamentally change asset management.”
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