BlackRock launches Bitcoin ETP after UK lifts trading ban

BlackRock launched a Bitcoin-linked exchange-traded merchandise (ETP) successful the United Kingdom pursuing the Financial Conduct Authority’s (FCA) determination to easiness restrictions connected crypto concern vehicles.

On Monday, the plus manager’s website showed that the iShares Bitcoin ETP had been listed connected the London Stock Exchange. According to the Sunday Times, the product, which is structured arsenic a Bitcoin-linked security, volition let investors to bargain fractions of Bitcoin (BTC) done units starting astatine astir $11. 

The ETP is designed to reflector BTC prices portion trading wrong a regulated framework, allowing investors to enactment successful the crypto marketplace done accepted brokerage accounts. It allows UK-based retail investors to summation vulnerability to Bitcoin without straight holding the plus oregon trading it connected crypto exchanges. 

BlackRock is 1 of the astir palmy issuers of Bitcoin-linked ETPs. According to SoSoValue, the company’s iShares Bitcoin exchange-traded money (ETF) has nett assets of implicit $85 billion. 

iShares Bitcoin ETP listings see the London Stock Exchange. Source: BlackRock

UK FCA eases stance connected crypto-linked concern vehicles

The determination came weeks aft the UK softened its stance connected definite crypto-linked ETPs. On Oct. 9, the FCA lifted its four-year ban connected crypto exchange-traded notes (ETNs). The regulator said investors tin entree these products done FCA-approved exchanges based successful the UK. 

David Geale, FCA enforcement manager of payments and integer finance, said that since they restricted retail ETN access, the marketplace has evolved. He said that products are present much mainstream and amended understood. 

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

Related: Bitcoin ETFs shed $1.2B successful reddish week, but Schwab remains bullish

While it softened its stance connected ETPs, the regulator said its retail prohibition connected crypto plus derivatives volition remain. However, the FCA added that it volition support an oculus connected the marketplace and see its attack to these “high-risk investments.”

Apart from ETNs, the UK besides moved to let plus managers to usage blockchain exertion for money tokenization.

On Oct. 14, the regulator said the determination aimed to thrust innovation and maturation successful plus management. The regulator recognized that tokenization has the “potential to thrust cardinal changes successful plus management.”

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