- BlackRock introduces iShares Bitcoin ETP on the LSE giving UK investors regulated access to bitcoin exposure through familiar brokerage accounts.
- The product is fully backed by bitcoin stored via Coinbase custody with daily cold wallet transfers and a temporary 15 bps TER until Dec 2025.
- BlackRock research expects a 21 percent increase in new UK crypto investors as the market base nears four million in the coming year.
BlackRock brings its iShares Bitcoin ETP to the London Stock Exchange, opening live access for UK retail investors today. The product delivers bitcoin exposure without the frictions of setting up a wallet or moving coins. It packages the asset into listed securities that settle like a stock order. It also shifts private key risk from the individual to an institutional issuer with defined controls and audited processes. The design targets investors who want regulated market rails and clear operational guardrails while still holding exposure that is physically backed by bitcoin.
BlackRock iShares Bitcoin ETP on LSE: retail access and structure
The iShares Bitcoin ETP lists under IB1T and trades on the LSE during normal market hours, letting investors use standard brokerage accounts and custody arrangements they already know. The issuer states the securities are 100 percent physically backed by bitcoin held through Coinbase, so shares represent real coin, not synthetic swaps. That structure reduces basis drift and improves tracking quality over long horizons. It also allows creation and redemption to move in step with spot flows, which can support tighter secondary-market pricing. UK crypto participation has expanded at a measured pace. BlackRock cites a 12 percent annualised growth rate in local crypto adoption since 2022, pointing to steady, not episodic, uptake. The firm’s research also expects a 21 percent rise in UK adults investing in crypto for the first time over the next 12 months. That projection would push the domestic investor base toward four million participants. With IB1T, the company positions a listed wrapper at the centre of that curve, meeting demand through familiar trading tools and settlement cycles.
Daily cold storage and security design
BlackRock describes a multi-year technology integration with Coinbase that underpins IB1T operations from the trade wallet to segregated cold storage. Coinbase custody combines physical security, multiparty computation, and strict process controls to secure private keys and client assets. At the end of each trading day, Coinbase transfers bitcoin from the trading wallet into segregated, offline cold wallets. This routine limits online exposure windows and reduces the attack surface after the close. The segregation also aligns asset flows with the ETP’s issuance ledger, which improves asset attribution and audit trails. These controls matter for a physically backed instrument that will attract retail flows as well as institutions using execution brokers. Investors want operational clarity, short settlement paths, and a custody model that limits online balances. They also want comfort that creation units and redemption events map to on-chain movements with minimal delay. By detailing daily cold storage and clear roles, BlackRock aims to answer those questions up front and reduce uncertainty about how coins move behind the scenes.
BlackRock fees, demand metrics, and projected adoption in the UK
Fees sit at the core of listed products. IB1T carries a total expense ratio of 15 basis points per annum from launch through 31 December 2025 due to a temporary, partial waiver. From 1 January 2026 onward, the TER moves to 25 basis points per annum. That schedule gives cost visibility for near-term allocation decisions while flagging the long-run rate that investors should model in their performance expectations. In a competitive field, ten basis points can influence tracking outcomes and net returns over several years, especially for buy-and-hold positions. Demand signals frame that pricing. BlackRock’s research places the UK third in crypto investment growth across Europe. The same work projects a 21 percent rise in first-time UK crypto investors over the next year, which would raise the total investor base toward four million. If those new accounts prefer traditional settlement and consolidated tax reports, listed ETPs often win wallet share. An exchange-traded wrapper also integrates with model portfolios and discretionary mandates that cannot touch direct wallets due to policy or operational limits. With IB1T, the issuer sets terms that fit those gatekeeping rules while keeping the structure physically backed.
Portfolio use case: BlackRock BII 1–2% allocation guidance
Portfolio construction remains the next step after access. The BlackRock Investment Institute suggests that investors with suitable governance and the ability to tolerate large short-term drawdowns may consider a 1–2 percent allocation to bitcoin within multi-asset portfolios. That range acknowledges bitcoin’s volatility while reserving room for diversification effects. It also recognises the need for risk budgets that absorb stress events without forcing sales at lows. IB1T enables that sizing through a listed, physically backed instrument that plugs into existing account infrastructure, risk systems, and compliance checks. Investors can stage entries rather than make a single purchase. They can also rebalance back to the target range when volatility moves the weight. The listed format makes those actions more straightforward than wallet-based workflows, which can add latency and operational steps. For advisory platforms, a small strategic weight held via IB1T can sit beside equity, bond, and commodity sleeves with the same reporting cadence and corporate actions processes.
Conclusion
The iShares Bitcoin ETP provides LSE access to physically backed bitcoin with daily cold storage and an expense ratio of 15 bps through 31 December 2025, rising to 25 bps from 1 January 2026. The offering aligns with a UK market that has grown at a 12 percent annualised rate since 2022 and could add first-time investors by 21 percent over the next year, taking the base toward four million. With Coinbase custody, segregated offline storage each day, and a clear fee path, the product targets investors who want listed exposure and defined controls. The BlackRock Investment Institute’s 1–2 percent allocation guidance gives a practical starting point for portfolios that can handle drawdowns and still want bitcoin in a controlled, exchange-traded wrapper.
Disclaimer
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from any company.
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