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BlackRock introduced a Bitcoin-related exchange-traded product (ETP) in the United Kingdom after the Financial Conduct Authority’s (FCA) decision to loosen limitations on crypto investment tools.
On Monday, the asset manager’s website displayed that the iShares Bitcoin ETP was now listed on the London Stock Exchange. As reported by the Sunday Times, this product, organized as a Bitcoin-linked security, will enable investors to acquire portions of Bitcoin (BTC) with units starting around $11.
The ETP is intended to replicate BTC prices while trading under a regulated framework, thus allowing investors to engage in the crypto market via conventional brokerage accounts. It permits retail investors in the UK to gain exposure to Bitcoin without the necessity of holding the asset or trading it on cryptocurrency exchanges.
BlackRock ranks among the most accomplished issuers of Bitcoin-linked ETPs. As per SoSoValue, the firm’s iShares Bitcoin exchange-traded fund (ETF) boasts net assets exceeding $85 billion.
UK FCA relaxes position on crypto-linked investment products
This initiative followed weeks after the UK relaxed its position on various crypto-linked ETPs. On Oct. 9, the FCA removed its four-year prohibition on crypto exchange-traded notes (ETNs). The regulatory body stated that investors can access these offerings via FCA-approved exchanges located in the UK.
David Geale, FCA executive director of payments and digital finance, remarked that since they restricted retail ETN access, the market has transformed. He noted that products have become increasingly mainstream and comprehensible.
A crypto ETN is traded similarly to other securities, with its underlying assets securely held by regulated custodians.
Related: Bitcoin ETFs lost $1.2B in a challenging week, yet Schwab stays optimistic
While it has relaxed its stance on ETPs, the regulator stated that its retail prohibition on crypto asset derivatives will persist. However, the FCA added that it intends to monitor the market closely and reassess its approach to these “high-risk investments.”
In addition to ETNs, the UK has also taken steps to enable asset managers to utilize blockchain technology for fund tokenization.
On Oct. 14, the regulator stated that this move is aimed at fostering innovation and growth within asset management. The regulator acknowledged that tokenization has the “potential to instigate fundamental changes in asset management.”
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