The product was launched after the Financial Conduct Authority lifted its four-year ban on crypto exchange-traded notes. The iShares Bitcoin ETP is listed on the London Stock Exchange, and it allows investors to buy regulated Bitcoin exposure starting from $11 per unit. Meanwhile, US Bitcoin ETFs experienced heavy outflows of $1.23 billion last week. This was their second-largest on record thanks to market volatility that saw Bitcoin drop from $121,000 to near $103,700. Ethereum ETFs also saw outflows due to the shifting investor sentiment.
BlackRock Expands Bitcoin Offerings
BlackRock officially launched a Bitcoin-linked exchange-traded product (ETP) in the United Kingdom. The move comes shortly after the UK’s Financial Conduct Authority (FCA) eased restrictions on crypto investment products, which helped pave the way for broader access to regulated digital asset exposure among investors.
The iShares Bitcoin ETP, which is listed on the London Stock Exchange, allows investors to buy units representing fractions of Bitcoin, with entry points starting at around $11. It is structured as a Bitcoin-linked security, and is designed to closely track the price of Bitcoin while offering the familiarity and safety of a regulated market framework. This setup makes it possible for retail and institutional investors in the UK to gain exposure to Bitcoin’s performance through traditional brokerage accounts, and eliminates the need to directly buy or store the cryptocurrency on exchanges.
BlackRock’s listings (Source: BlackRock)
BlackRock is already one of the largest issuers of crypto-linked products, and saw massive success with its US-based iShares Bitcoin ETF, which holds more than $85 billion in net assets according to SoSoValue. The expansion into the UK market is a huge step in aligning European and American institutional crypto adoption trends, especially as global interest in Bitcoin is accelerating.
Announcement from the FCA
The launch happened after the FCA’s Oct. 9 decision to lift its four-year ban on crypto exchange-traded notes (ETNs), due to increased market maturity and improved understanding of digital assets. David Geale, the FCA’s executive director of payments and digital finance, said that the regulatory shift is part of the growing legitimacy and mainstream acceptance of such products. ETNs, similar to ETPs, allow investors to trade securities backed by digital assets held securely by regulated custodians.
While the FCA is still cautious and maintains its ban on retail derivatives trading in crypto, the regulator signaled openness to revisiting its stance as the market matures. In addition to easing ETP restrictions, the UK also moved toward allowing blockchain-based fund tokenization. This could modernize asset management and encourage innovation across the financial sector.
Bitcoin ETFs Reverse Course
Meanwhile, US Bitcoin ETFs saw a reversal in investor sentiment last week after recording a massive $1.23 billion in net outflows. This was the second-largest weekly withdrawal since their launch in 2024.
Data from SoSoValue shows that the sell-off accelerated toward the end of the week, as $366.6 million left spot Bitcoin ETFs on Friday alone. The wave of redemptions followed the previous week’s robust $2.7 billion inflow.
Weekly Bitcoin ETF flows (SoSoValue)
The last time Bitcoin ETFs faced outflows of this magnitude was during the week ending Feb. 28, when $2.6 billion exited the market due to a similar downturn in prices. This latest round of outflows coincided with Bitcoin’s sharp price drop from around $121,000 on Oct. 10 to approximately $103,700 by Oct. 17.
However, the market began to recover over the weekend. Bitcoin climbed 3.2% over the past 24 hours to trade around $110,912 at press time. Ethereum followed a similar rebound by rising 2.8% to about $4,033. This could mean that there is renewed buying interest after the steep declines of last week.
BTC’s price action over the past week (Source: CoinMarketCap)
Spot Ethereum ETFs also saw a reversal in investor flows, with $311.8 million in net outflows last week compared to $488.3 million in inflows the week before. Analysts said the recent volatility and fund withdrawals happened amid changing expectations around US monetary policy.
Rachael Lucas, a crypto analyst at BTC Markets, explained that traders are now anticipating a potential Federal Reserve interest rate cut later this month, alongside an early conclusion to the current cycle of quantitative tightening. “Chair Jerome Powell acknowledged that while growth is still firmer than expected, labor market softness persists,” Lucas said. “This shift eased bond yields and improved the liquidity environment for risk assets, including digital assets.”
While short-term volatility rattled the market’s confidence, many investors are still focused on the macro outlook, and suggest that renewed inflows could follow if the Fed signals a dovish pivot. For now, however, Bitcoin ETFs are navigating one of their most turbulent trading weeks since their launch.
