Bitcoin
Bitcoin and Ethereum ETNs hit the London Stock Exchange floor
Last updated: May 28, 2024 05:07 EDT | 1 minute reading
Investors in the UK can now trade exchange-traded products that track Bitcoin It is Ethereum through the London Stock Exchange as the country closes the gap with other financial leaders in digital assets.
The change occurs after the The Financial Conduct Authority (FCA) approved the first exchange-traded crypto products from issuers including WisdomTree and 21Shares last week.
21Shares said it has launched four new physically-backed exchange-traded crypto notes (ETNs) on Tuesday. Offerings include: 21Shares Bitcoin ETN, 21Shares Ethereum Staking ETN, 21Shares Bitcoin Core ETN, and 21Shares Ethereum Core ETN.
Competitor firm WisdomTree has also entered the fray with two physically-backed ETPs: WisdomTree Physical Bitcoin and WisdomTree Physical Ethereum ETFs.
Listings for both issuers, as well as Invesco Digital Markets, appeared in a FCA website with approvals on May 28th.
FCA Restrictions Limit London Stock Exchange Crypto ETF Market
Despite directly holding Bitcoin or Ether, these new crypto products are restricted to professional investors only, in accordance with FCA regulations. This more rigorous approach contrasts with the US, where recently approved Bitcoin ETFs generate a combined value of $59 billion. This is almost five times Europe’s total crypto trading volume.
Still, Alex Pollak, UK head of 21Shares predicted that the The UK will become Europe’s top crypto ETF market within three years. But he believes the key to the country’s success lies in allowing ordinary investors to trade these products.
Earlier this month, Alun Cairns, a Conservative member of the UK Parliament, urged the FCA to review its ban on crypto ETNs for retail investors. Expressing concern over the country’s backward position, he said the general public would be deprived of opportunities.
US Market Surprises with Early Approval of Spot Ethereum ETFs
Elsewhere, the The US Securities and Exchange Commission (SEC) has given the green light to detect Ethereum ETFs last week. This marked a dramatic reversal for the market, as analysts did not expect approval to come as early as May.
The measure presses South Korean regulators will follow suit and potentially enable similar crypto investments.