$2B to flow into BlackRock’s UK Bitcoin ETF: How UK traders could recycle into IBIT
BlackRock’s iShares Bitcoin Trust (IBIT) started buying and selling within the UK on Oct. 20, opening a market that could funnel between $1.5 billion and $2 billion into the fund over time as UK retail buyers acquire regulated entry to Bitcoin (BTC) publicity.
The launch capitalizes on the Financial Conduct Authority’s (FCA) current reversal of its ban on crypto-based exchange-traded products (ETPs).
BlackRock’s US Bitcoin ETF, which launched two years in the past and has practically $65 billion in lifetime inflows, now provides British buyers entry at roughly $11 per unit. This is a fraction of Bitcoin’s present $110,365 worth.
BlackRock reported $17 billion in internet inflows to its digital asset merchandise throughout the third quarter alone, a part of $205 billion in complete internet inflows because the agency crossed $13 trillion in belongings below administration.
The math behind the chance
The UK crypto market holds an estimated £13.3 billion throughout 7 million buyers, per FCA data from March 2025.
An IG report from early October projected the market could expand 20% following the FCA’s coverage shift, translating to £2.4 billion to £3.2 billion in new capital, or roughly $3.2 billion to $4.3 billion.
Bitcoin merchandise have captured 60.6% of crypto funding flows globally, in accordance to CoinShares’ newest report.
Applied to UK projections, Bitcoin-focused autos could draw $1.93 billion to $2.6 billion. IBIT’s dominance within the US market, the place it instructions 75.5% of all Bitcoin ETF inflows since launch, suggests the fund could safe $1.5 billion to $2 billion from British buyers.
Facilitating onboarding
The fund’s construction removes conventional obstacles that saved mainstream buyers on the sidelines.
Rather than navigating crypto exchanges, managing non-public keys, or buying whole cash, buyers purchase regulated shares by means of acquainted brokerage accounts.
The low entry threshold, roughly $11 per unit, democratizes entry to an asset that trades above $100,000.
BlackRock’s survey knowledge helps aggressive progress projections. The agency expects a 21$ improve in UK adults investing in crypto for the primary time over the subsequent 12 months, with Britain rating third in European crypto funding progress.
The firm predicts 4 million Bitcoin buyers within the UK by year-end.
Interest concentrates amongst youthful demographics. IG’s analysis discovered 50% of 18-24-year-olds and 49% of 25-34-year-olds would think about investing in crypto by way of exchange-traded notes.
Additionally, 32percentof potential buyers cite regulatory oversight and security as major motivations, whereas 19% worth the flexibility to maintain crypto inside tax-efficient Individual Savings Accounts and Self-Invested Personal Pensions.
Bitcoin’s fastened provide of 21 million cash, with 95% already mined, creates shortage dynamics that amplify demand pressures.
BTC’s worth grew 120% final 12 months, and is up by practically 20% in 2025, pushed partly by President Donald Trump’s pro-crypto stance following his return to the White House.
The UK authorities outlined plans final month for a complete crypto-asset regulatory regime overseen by the FCA, positioning Britain to compete with jurisdictions that moved quicker on digital asset frameworks.
BlackRock’s launch transforms that regulatory shift into accessible merchandise for thousands and thousands of retail buyers who beforehand confronted exclusion or complexity obstacles.
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