What is Bitcoin
Bitcoin is the first cryptocurrency, launched in 2009 by the pseudonymous Satoshi Nakamoto, and runs on a decentralised network with no central authority. It's often described as "digital gold" due to its supply capped at 21 million units.
Unlike shares or ETFs, Bitcoin generates no profits, dividends or cash flows — its value depends entirely on market demand, making it an asset class with a very different risk dynamic from traditional financial instruments.
Frequently asked questions
Is Bitcoin regulated in the UK?
The UK has its own evolving regime for cryptoasset regulation, separate from the EU's MiCA framework. Crypto exchanges and custodians must register with the FCA for anti-money laundering purposes, but this doesn't equate to the investor protections that regulated financial instruments like ETFs and shares carry.
What's the difference between buying Bitcoin on an exchange versus via an ETP?
On an exchange you hold the keys directly (or the exchange custodies them for you); an ETP (Exchange Traded Product) is instead a listed financial instrument that tracks the price, purchasable through the same broker account you'd use for ETFs and shares.
How is Bitcoin taxed in the UK?
Gains from cryptocurrencies in the UK are generally subject to Capital Gains Tax, with specific rules that differ from those for ETFs and shares held in an ISA — this is an evolving area, so check the latest HMRC guidance or speak to a tax adviser for your situation.
