BlackRock’s iShares Bitcoin Trust (IBIT) began trading in the UK on October 20, opening a market where UK retail investors could funnel $1.5 billion to $2 billion into the fund over time as they gain regulated access to Bitcoin (BTC) exposure.
The launch capitalizes on the Financial Conduct Authority’s (FCA) recent lifting of its ban on cryptocurrency-based exchange traded products (ETPs).
BlackRock’s US Bitcoin ETF was launched two years ago with lifetime inflows of nearly $65 billion and is now available to UK investors for entry at around $11 per unit. This is a fraction of Bitcoin’s current price of $110,365.
BlackRock reported $17 billion in net inflows into its digital asset products in the third quarter alone, part of a total net inflow of $205 billion as the company has more than $13 trillion in assets under management.
The math behind the opportunity
According to FCA data for March 2025, the UK cryptocurrency market is estimated to hold an estimated £13.3 billion by 7 million investors.
An IG report from early October predicted that the FCA’s policy shift could widen the market by 20%, equating to between £2.4bn and £3.2bn of new capital, or approximately $3.2bn to $4.3bn.
According to CoinShares’ latest report, Bitcoin products account for 60.6% of global cryptocurrency investment flows.
Applying the UK forecast, a Bitcoin-centric vehicle could raise between $1.93 billion and $2.6 billion. IBIT’s dominance in the US market, which has accounted for 75.5% of all Bitcoin ETF inflows since its inception, suggests the fund could secure between $1.5 billion and $2 billion from UK investors.
Accelerate onboarding
The fund’s structure removes traditional barriers that have kept mainstream investors on the sidelines.
Investors purchase regulated stocks through their familiar brokerage accounts, rather than operating a crypto exchange, managing private keys, or purchasing entire coins.
A low entry standard of approximately $11 per unit democratizes access to assets trading above $100,000.
BlackRock research data supports aggressive growth forecasts. The company expects the number of first-time crypto investors in the UK to increase by $21 over the next 12 months, ranking the UK third in Europe for crypto investment growth.
The company predicts there will be 4 million Bitcoin investors in the UK by the end of the year.
Interest is concentrated among young people. An IG survey found that 50% of 18-24 year olds and 49% of 25-34 year olds are considering investing in cryptocurrencies through listed securities.
Furthermore, 32% of prospective investors cited regulatory oversight and safety as their primary motivation, and 19% appreciated the ability to hold cryptocurrencies in tax-efficient personal savings accounts or self-invested personal pensions.
Bitcoin has a fixed supply of 21 million coins, 95% of which has already been mined, creating scarcity dynamics that amplify demand pressure.
The price of BTC rose 120% last year and is expected to rise nearly 20% in 2025, due in part to President Donald Trump’s pro-crypto stance after returning to the White House.
The UK government last month outlined plans for a comprehensive crypto-asset regulatory regime overseen by the FCA, putting the UK in a position to compete with jurisdictions moving more quickly on digital asset frameworks.
With the launch of BlackRock, that regulatory transition has become an accessible product for millions of retail investors who previously faced barriers of exclusion and complexity.
(Tag translation) Bitcoin
