Ethereum
Bitcoin and Ethereum ETNs hit the London Stock Exchange trading floor
Last updated: May 28, 2024 05:07 EDT | 1 minute reading
Investors in the UK can now trade exchange-traded products that follow Bitcoin And Ethereum via the London Stock Exchange, as the country narrows the gap with other financial leaders in the digital assets space.
The move comes after The Financial Conduct Authority (FCA) has approved the first exchange-traded crypto products from issuers including WisdomTree and 21Shares last week.
21Shares said it launched four new physically-backed crypto exchange-traded notes (ETN) Tuesday. Offerings include: 21Shares Bitcoin ETN, 21Shares Ethereum Staking ETN, 21Shares Bitcoin Core ETN, and 21Shares Ethereum Core ETN.
Competing company WisdomTree has also entered the fray with two physically-backed ETPs: the WisdomTree Physical Bitcoin and WisdomTree Physical Ethereum ETFs.
Quotes from both issuers, as well as Invesco Digital Markets, appeared on a FCA website showing approvals on May 28.
FCA restrictions limit London Stock Exchange crypto ETF market
Although they directly hold Bitcoin or Ether, these new crypto products are reserved for professional investors only, in accordance with FCA regulations. This stricter approach contrasts with the United States, where recently approved Bitcoin ETFs manage a total of $59 billion. This represents almost five times the total crypto vehicle trading volume in Europe.
However, Alex Pollak, head of UK at 21Shares, predicted that the UK to become Europe’s leading 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 British Conservative MP, urged the FCA to review its ban on crypto ETNs to individual investors. Expressing concerns over the nation’s backwardness, he said the general public would be deprived of opportunities.
US Surprises Market With Early Approval of Spot Ethereum ETFs
Elsewhere, the US Securities and Exchange Commission (SEC) Gives Green Light to Spot Ethereum ETFs last week. This marked a dramatic reversal for the market, as analysts had not expected approval as early as May.
This decision puts pressure on South Korean regulators will follow suit and potentially allow similar crypto investments.