Bitcoin News Today: FCA's Policy Shift Opens UK Crypto Floodgates to Retail Investors

BlackRock's Bitcoin ETP Launches on London Stock Exchange, Reshaping UK Crypto Access

The London Stock Exchange (LSE) marked a pivotal moment in the UK's digital asset landscape as BlackRock launched its iShares Bitcoin Exchange-Traded Product (ETP) under the ticker IB1T on October 20, 2025. The product, the first regulated Bitcoin exposure for UK retail investors in four years, follows the Financial Conduct Authority's (FCA) decision to lift a long-standing ban on crypto-linked funds. This move underscores a broader shift in regulatory attitudes toward cryptocurrencies, with the UK aligning its approach with evolving market dynamics and global trends, according to an Analytics Insight report.

The FCA's 2021 ban, rooted in concerns over price volatility and retail investor risk, has now been reversed. Regulators noted that the crypto market has matured, with improved transparency and a more robust framework. According to FCA data, 12% of UK adults—around 7 million people—now own digital assets, a significant rise from 4% in 2021, the Analytics Insight article noted. David Geale, the FCA's executive director for payments and digital finance, highlighted the sector's transformation: "Products have become more mainstream and better understood."

BlackRock's IB1T offers a physically backed Bitcoin ETP, providing direct exposure to the cryptocurrency's spot price without requiring investors to manage wallets or private keys. The fund charges an annual fee of 0.15%, which will increase to 0.25% after December 31, 2025. Its debut was met with optimism, as Bitcoin traded near $110,000—triple its 2021 level. The ETP opened at £11.10 and rose 5.54% by the close of its first trading session, the report added.

The launch coincided with a surge in competitive offerings. 21Shares, WisdomTree, and Bitwise simultaneously listed crypto funds on the LSE, signaling a crowded market. 21Shares introduced four Bitcoin and Ethereum-tracking products with a 0.10% fee, while Bitwise's Core Bitcoin ETP offered an initial 0.05% fee for six months—the lowest among competitors. Russell Barlow, 21Shares' CEO, called the day "a landmark step for the UK market," emphasizing the accessibility of regulated crypto investments, the Analytics Insight piece observed.

BlackRock's expansion into crypto aligns with its broader strategy to diversify digital asset products. The company already operates a U.S.-listed Bitcoin ETF and an Ethereum ETP. For IB1T, all Bitcoin is stored with UK-regulated custodians, ensuring compliance with local regulations. This development positions the UK as a key player in the global crypto market, bridging traditional finance and blockchain technology, the article noted.

The FCA's policy shift reflects a global convergence in crypto adoption. With the U.S. and Europe embracing similar frameworks, the LSE's role as a gateway for institutional and retail investors is amplified. As adoption accelerates, the question remains: Could IB1T become the standard for UK Bitcoin exposure within one of the world's oldest financial hubs?