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BlackRock’s Introduction to Bitcoin ETP for UK Investors
BlackRock has introduced its iShares Bitcoin Exchange-Traded Product (IB1T) on the London Stock Exchange to provide UK retail investors with access to Bitcoin exposure without the complexities of trading or holding the cryptocurrency directly.
Product Details
The ETP is fully supported by Bitcoin and custodied by Coinbase. It ensures security by storing assets in segregated, offline cold storage wallets at the close of each trading day within Coinbase’s institutional security framework.
Market Demand and Growth
BlackRock’s launch of the Bitcoin ETP in the UK aligns with the increasing interest in cryptocurrency exposure in the region. Research indicates a 12% annual growth in local adoption of cryptocurrencies since 2022, with an expected 21% rise in new UK crypto investors over the next year, positioning the country as a significant player in European crypto investment growth.
Statement from BlackRock
Jane Sloan, EMEA Head of Global Product Solutions at BlackRock, emphasized that the listing of iShares Bitcoin ETP offers a more secure path to digital assets through conventional investment platforms. The UK investor base is forecasted to expand significantly, potentially reaching four million individuals in the upcoming year.
Expenses and Investment Strategy
The iShares Bitcoin ETP has a total expense ratio (TER) of 15 basis points per annum, with a temporary fee waiver in place until December 31, 2025. Post this date, the TER will increase to 25 bps annually. BlackRock’s Investment Institute recommends a 1–2% allocation to Bitcoin for investors comfortable with the asset’s volatility, within diversified portfolios.
Conclusion
BlackRock’s latest offering of the iShares Bitcoin ETP on the London Stock Exchange opens up new opportunities for UK retail investors to tap into the cryptocurrency market. With secure custody and a straightforward investment mechanism, this product aims to meet the growing demand for digital asset exposure in the region.
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