BlackRock has officially listed its iShares Bitcoin ETP on the London Stock Exchange, providing UK retail investors with direct exposure to Bitcoin through traditional investment accounts for the first time. The new exchange-traded product offers a simplified and regulated entry point into the digital asset market.

How the Physically-Backed ETP Works

The iShares Bitcoin ETP (IB1T) is 100% physically backed by Bitcoin, meaning it holds the underlying asset directly. This structure is designed to give investors confidence and removes the technical hurdles often associated with cryptocurrency, such as managing private keys or setting up digital wallets.

Custody of the assets is managed by Coinbase, which leverages an integrated system with BlackRock to ensure institutional-grade security. As part of this robust protocol, all Bitcoin transferred into the ETP is moved into segregated, offline cold storage wallets at the close of each trading day, protecting it from online threats.

Meeting a Surge in UK Investor Demand

The launch comes in response to a clear and growing demand for cryptocurrency in the United Kingdom. According to BlackRock, investor participation in the UK has been rising at an annualized rate of 12% since 2022. The firm’s research also predicts a 21% increase in first-time crypto investors over the next 12 months, positioning the UK as third in Europe for crypto investment growth.

With the UK’s crypto investor base projected to near four million people in the coming year, the IB1T product is intended to serve as a secure gateway to digital assets through familiar investment platforms. For investors with a tolerance for short-term volatility, the BlackRock Investment Institute has suggested that a 1–2% allocation to Bitcoin could be a reasonable component within a diversified portfolio.

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