BlackRock’s iShares Bitcoin Belief (IBIT) started buying and selling within the UK on October 20, opening a market the place UK retail traders might funnel $1.5 billion to $2 billion into the fund over time as they achieve regulated entry to Bitcoin (BTC) publicity.
The launch capitalizes on the Monetary Conduct Authority’s (FCA) latest lifting of its ban on cryptocurrency-based alternate traded merchandise (ETPs).
BlackRock’s US Bitcoin ETF was launched two years in the past with lifetime inflows of practically $65 billion and is now accessible to UK traders for entry at round $11 per unit. This can be a fraction of Bitcoin’s present value of $110,365.
BlackRock reported $17 billion in internet inflows into its digital asset merchandise within the third quarter alone, a part of a complete internet influx of $205 billion as the corporate has greater than $13 trillion in belongings beneath administration.
The maths behind the chance
In accordance with FCA information for March 2025, the UK cryptocurrency market is estimated to carry an estimated £13.3 billion by 7 million traders.
An IG report from early October predicted that the FCA’s coverage shift might widen the market by 20%, equating to between £2.4bn and £3.2bn of recent capital, or roughly $3.2bn to $4.3bn.
In accordance with CoinShares’ newest report, Bitcoin merchandise account for 60.6% of world cryptocurrency funding flows.
Making use of the UK forecast, a Bitcoin-centric automobile might elevate between $1.93 billion and $2.6 billion. IBIT’s dominance within the US market, which has accounted for 75.5% of all Bitcoin ETF inflows since its inception, suggests the fund might safe between $1.5 billion and $2 billion from UK traders.
Speed up onboarding
The fund’s construction removes conventional obstacles which have stored mainstream traders on the sidelines.
Buyers buy regulated shares by means of their acquainted brokerage accounts, fairly than working a crypto alternate, managing personal keys, or buying whole cash.
A low entry normal of roughly $11 per unit democratizes entry to belongings buying and selling above $100,000.
BlackRock analysis information helps aggressive progress forecasts. The corporate expects the variety of first-time crypto traders within the UK to extend by $21 over the subsequent 12 months, rating the UK third in Europe for crypto funding progress.
The corporate predicts there can be 4 million Bitcoin traders within the UK by the top of the yr.
Curiosity is concentrated amongst younger individuals. An IG survey discovered that fifty% of 18-24 yr olds and 49% of 25-34 yr olds are contemplating investing in cryptocurrencies by means of listed securities.
Moreover, 32% of potential traders cited regulatory oversight and security as their major motivation, and 19% appreciated the flexibility to carry cryptocurrencies in tax-efficient private financial savings accounts or self-invested private pensions.
Bitcoin has a set provide of 21 million cash, 95% of which has already been mined, creating shortage dynamics that amplify demand stress.
The worth of BTC rose 120% final yr and is predicted to rise practically 20% in 2025, due partially to President Donald Trump’s pro-crypto stance after returning to the White Home.
The UK authorities final month outlined plans for a complete crypto-asset regulatory regime overseen by the FCA, placing the UK ready to compete with jurisdictions transferring extra rapidly on digital asset frameworks.
With the launch of BlackRock, that regulatory transition has change into an accessible product for tens of millions of retail traders who beforehand confronted obstacles of exclusion and complexity.
