London just opened a new door for crypto exposure—and it’s not a niche side entrance. With the UK regulator relaxing restrictions, BlackRock has listed its first physically backed Bitcoin ETP on the London Stock Exchange, giving millions of investors a regulated, familiar way to access BTC. If the US ETF boom was any guide, this could reshape liquidity during London hours and unlock fresh flows that matter for price discovery.

What happened

BlackRock’s iShares Bitcoin Exchange-Traded Product (IB1T) began trading on the London Stock Exchange on October 22, 2025. Following the FCA’s decision to lift its ban on crypto-linked investment products for retail investors, the ETP provides exposure to the Bitcoin price without direct self-custody.

Key details: - Ticker: IB1T - Listing: London Stock Exchange - Structure: Physically backed—each share corresponds to real BTC held in custody - Custodian: Coinbase (cold storage, MPC, segregated wallets) - Expense ratio: 0.15% per annum until Dec 31, 2025; 0.25% from Jan 1, 2026

Why this matters to traders

A regulated, GBP-native vehicle broadens participation and can shift intraday liquidity. With London as a top global trading hub, IB1T may: - Boost price discovery during European hours - Tighten cross-venue spreads between UK, US, and EU Bitcoin products - Enable portfolio managers who need exchange-traded, regulated wrappers to allocate efficiently - Increase sensitivity of BTC to UK macro and GBP flows

In the US, spot BTC ETFs attracted massive AUM and influenced net flows and volatility regimes. A UK-listed, physically backed product could be a similar liquidity driver—especially around London open and US overlap.

Key risks to price and execution

• BTC volatility: Rapid moves can widen spreads and deepen slippage.
• Premium/discount to NAV: Check intraday NAV; don’t chase dislocations.
• FX exposure: GBP-based returns may diverge from USD BTC performance.
• Market hours mismatch: LSE trading vs 24/7 BTC can create gap risks.
• Fee step-up: Cost rises to 0.25% on Jan 1, 2026—factor into holding periods.
• Liquidity pockets: Spreads often widen at open/close or on news.
• Regulatory/custody concentration: Monitor FCA updates and Coinbase custody status.

Actionable game plan

• Track IB1T microstructure: Monitor daily volume, spreads, and premium/discount versus NAV.
• Use limit orders: Especially at the open/close to manage slippage.
• Compare total cost: Brokerage + spread + expense ratio; reassess after the 2026 fee change.
• Mind the clock: Execute during the most liquid windows (London–US overlap) when spreads tend to tighten.
• Manage FX: If your base currency is USD/EUR, consider hedging GBP exposure.
• Size positions prudently: Account for BTC’s volatility and potential gap risk between LSE sessions.
• Watch cross-venue flows: Track US spot ETF flows and European ETP volumes for correlation and arbitrage signals.
• Broker/Wrapper checks: Confirm platform access, settlement, and any eligibility for specific account types before trading.

What to watch next

• Initial IB1T volume, spread behavior, and premium/discount vs NAV during the first weeks.
• Flow correlation between London hours and US spot BTC ETF inflows/outflows.
• Announcements from other issuers—more UK ETPs could tighten spreads and deepen liquidity.
• On-chain signals indicating ETP-driven custody accumulation.
• FCA commentary, platform integrations, and any changes in distribution or access.

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