BlackRock Launches Bitcoin ETP in the UK After FCA Lifts Ban

BlackRock launched a Bitcoin-linked exchange-traded product (ETP) in the UK following the Monetary Conduct Authority’s (FCA) resolution to ease restrictions on crypto funding autos.

On Monday, the asset supervisor’s web site showed that the iShares Bitcoin ETP had been listed on the London Inventory Alternate. According to the Sunday Instances, the product, which is structured as a Bitcoin-linked safety, will enable traders to purchase fractions of Bitcoin (BTC) via models beginning at about $11. 

The ETP is designed to reflect BTC costs whereas buying and selling inside a regulated framework, permitting traders to take part within the crypto market via conventional brokerage accounts. It permits UK-based retail traders to achieve publicity to Bitcoin with out immediately holding the asset or buying and selling it on crypto exchanges. 

BlackRock is likely one of the most profitable issuers of Bitcoin-linked ETPs. Based on SoSoValue, the corporate’s iShares Bitcoin exchange-traded fund (ETF) has web belongings of over $85 billion. 

UK FCA eases stance on crypto-linked funding autos

The transfer got here weeks after the UK softened its stance on sure crypto-linked ETPs. On Oct. 9, the FCA lifted its four-year ban on crypto exchange-traded notes (ETNs). The regulator stated traders can entry these merchandise via FCA-approved exchanges primarily based within the UK. 

David Geale, FCA govt director of funds and digital finance, stated that since they restricted retail ETN entry, the market has advanced. He stated that merchandise at the moment are extra mainstream and higher understood. 

A crypto ETN is traded equally to different securities, with its underlying belongings held securely by regulated custodians. 

Associated: Bitcoin ETFs shed $1.2B in red week, but Schwab remains bullish

Whereas it softened its stance on ETPs, the regulator stated its retail ban on crypto asset derivatives will stay. Nevertheless, the FCA added that it’s going to regulate the market and take into account its method to those “high-risk investments.”

Other than ETNs, the UK additionally moved to allow asset managers to make use of blockchain expertise for fund tokenization.

On Oct. 14, the regulator stated the transfer aimed to drive innovation and progress in asset administration. The regulator acknowledged that tokenization has the “potential to drive elementary modifications in asset administration.”