BlackRock IB1T Bitcoin ETP London: Paving The Way For UK Crypto
BlackRock Officially Launches Bitcoin ETP (IB1T) In London: A Historic Turning Point For The UK Crypto Market
On Monday, October 20, 2025, BlackRock, the world’s largest asset manager, officially listed its iShares Bitcoin Exchange-Traded Product (ETP) under the ticker IB1T on the London Stock Exchange (LSE). This event marks not only a major milestone for the financial giant but also a strong signal of the growing acceptance of Bitcoin within traditional finance—especially in the United Kingdom. The launch of IB1T opens a regulated and accessible channel for both retail and institutional investors in the UK to gain exposure to Bitcoin.
Details Of IB1T And Product Structure
IB1T is designed to provide investors with a simple and secure way to gain exposure to Bitcoin without directly owning or managing digital assets.
Physically-Backed Product
IB1T is a physically backed Bitcoin ETP, meaning each ETP share corresponds to a specific amount of Bitcoin. This structure offers investors reassurance that the underlying asset is securely held.
Listing and Custody Information
The product is listed on the London Stock Exchange (LSE), one of the world’s premier trading venues. The underlying Bitcoin is custodied by Coinbase Custody International Ltd. and stored in offline cold storage. Bitcoin is transferred daily from trading wallets to segregated cold wallets to ensure maximum security.
Benchmark Index And Management Fees
The ETP tracks the CME CF Bitcoin Reference Rate, a widely recognized industry benchmark. The total expense ratio (TER) is 0.15% annually until December 31, 2025, after which it will rise to 0.25% per year starting January 1, 2026—a competitive fee within the ETP market.
Accessibility And European Presence
With an initial price of around $11 per ETP unit, IB1T is accessible to a wide range of investors, including smaller participants. Notably, BlackRock had already established a crypto presence in Europe before its UK launch—with IB1T listed on Xetra, Euronext Amsterdam, and Euronext Paris since March 2025.
Initial Trading Volume And Market Reaction
In the first hours of trading in London, over 1,000 IB1T shares changed hands. According to LSE data, as of 1:45 PM BST on October 20, 2025, a total of 2,000 shares had traded, valued at £16,580.48.
While modest compared to the massive trading volumes of U.S. spot Bitcoin ETFs, analysts regard this as a “symbolic milestone” and a sign of “cautious but growing interest” among UK investors in regulated Bitcoin exposure. This event coincides with an increase in total daily crypto trading volume to $155.78 billion on launch day, reflecting improving market sentiment and heightened activity.
Regulatory Background And Impact In The UK
The launch of IB1T follows a major regulatory shift in the United Kingdom.
FCA Lifts Key Ban
The listing comes after the Financial Conduct Authority (FCA) lifted a four-year ban that had prohibited retail investors from accessing crypto-based Exchange-Traded Notes (ETNs) and ETPs since January 2021. The decision to lift the ban was announced on October 8, 2025.
Reasons And Investor Benefits
David Geale, Director of Payments and Digital Finance at the FCA, explained that the crypto market has evolved significantly and products have become “more mainstream and better understood” since the ban was imposed. This change enables UK citizens to invest in Bitcoin through traditional brokerage accounts without the need to open crypto wallets or trade directly on exchanges.
Geale emphasized: “Our decision allows individuals to make their own choice as to whether a high-risk investment such as this is suitable for them—with full awareness that they could lose all the money they invest.”
Tax Incentives And London’s Position
Crypto ETPs can now be held in Individual Savings Accounts (ISAs) and Self-Invested Personal Pensions (SIPPs), offering significant tax advantages to investors. However, this ISA benefit will be time-limited, with crypto ETPs only qualifying for Innovative Finance ISAs after April 6, 2026.
This development further strengthens London’s position as an emerging hub for regulated crypto finance, aligning with the UK government’s goal of establishing the city as a global center for digital asset innovation.
Growing UK Interest In Bitcoin
The UK is witnessing a surge in public interest toward cryptocurrencies—and IB1T arrives at a perfect time.
Expanding Crypto Investor Base
The UK’s crypto investor base is expected to reach 4 million people within the next year. A recent BlackRock report found a 12% increase in crypto investments since 2022, with 21% of UK adults expected to invest for the first time in the coming year. FCA research also shows that 12% of UK adults now own cryptocurrency, up from 4% in 2021.
Market Outlook And Competition
Research from IG Group forecasts a 20% expansion of the UK crypto market following these regulatory changes, with 30% of adults considering investment through new regulated products. BlackRock faces competition from 21Shares, WisdomTree, and Bitwise, which also launched Bitcoin and Ethereum ETPs on the LSE around the same period—sparking fee competition (for example, Bitwise temporarily reduced its Bitcoin Core ETP fee to 0.05% for six months).
Global Context And Institutional Acceptance
The launch of IB1T in London fits into a broader global wave of institutional crypto adoption.
Success Of The U.S. Spot Bitcoin ETF
IB1T follows the tremendous success of BlackRock’s iShares Bitcoin Trust (IBIT) in the United States, launched in January 2024. IBIT has become the world’s largest spot Bitcoin ETF, holding $85.5 billion in assets under management (AUM) as of October 2025, and generating substantial fee revenue.
Europe Ahead Of The U.S.
European investors have had access to physically backed Bitcoin ETPs since 2019, years before U.S. regulators approved spot Bitcoin ETFs in 2024. European ETPs are typically structured as perpetual debt securities backed by underlying assets, offering a familiar investment format for traditional investors.
Global Trends And Bitcoin Price Impact
Similar regulatory frameworks for Bitcoin ETPs are emerging in Canada, Germany, and Japan, highlighting a global appetite for regulated crypto products. Bitcoin prices rose above $111,000 on the day of IB1T’s debut, reflecting bullish sentiment. Institutional Bitcoin holdings increased 38% in Q3 2025, with 172 companies collectively holding over 1 million BTC.
However, there were notable outflows from U.S. Bitcoin ETFs ($1.23 billion) and Ethereum funds ($311.8 million) between October 13–17, 2025, suggesting geographic capital rotation as investors explore opportunities in European markets.
Stakeholder Perspectives
BlackRock (Jane Sloan)
Jane Sloan, spokesperson for BlackRock, emphasized that IB1T “is built on institutional-grade infrastructure,” giving UK investors access to Bitcoin with robust custody and regulatory oversight.
FCA (David Geale)
David Geale reaffirmed that lifting the ban allows individuals to decide for themselves whether a high-risk investment like Bitcoin aligns with their financial goals.
Market Analysts
Analysts described BlackRock’s move as a “historic step for the UK market” and a “game changer for everyday investors” who had long been excluded from regulated crypto products.
Conclusion
BlackRock’s launch of the Bitcoin ETP (IB1T) in London marks a historic milestone—not only for BlackRock but for the entire UK crypto market. It reflects a significant regulatory shift by the FCA and demonstrates Bitcoin’s increasing integration into traditional finance.
With the expected growth of the UK’s crypto investor base and convenient, regulated access, IB1T is poised to attract new capital from asset managers and institutional portfolios, reinforcing London’s role as a global digital finance hub. This event sends a clear signal that Bitcoin is evolving from a speculative asset into a core component of mainstream financial infrastructure.
Disclaimer: This article is for informational and market commentary purposes only. It does not constitute any guarantee of performance, profitability, or absolute accuracy of data. All investment decisions are made at the reader’s own risk.