Crypto ETPs listing:
The London Stock Exchange (LSE) is set to list crypto exchange-traded products (ETPs) for the first time later this month, following the Financial Conduct Authority’s (FCA) approval of prospectuses from WisdomTree (WT) and 21Shares. New York-based WisdomTree received approval to list its Physical Bitcoin (BTCW) and Physical Ethereum (ETHW) ETPs, expected to begin trading on May 28. Zurich-based 21Shares was also approved for bitcoin (BTC) and ether (ETH) products, which may start trading around the same time. Invesco’s prospectus was approved as well, but the firm has not provided further details.
This approval in the U.K. comes several months after the U.S. green-lighted spot bitcoin exchange-traded funds in January. Similar products have been available in various European markets for years. Both WisdomTree and 21Shares were among the firms approved for spot ETFs in the U.S. earlier this year.
In March, the FCA stated it would not oppose financial institutions seeking to list ETPs for professional investors. The LSE confirmed it would accept applications for bitcoin (BTC) and ether (ETH) products in the second quarter. Unlike products in Europe and the U.S., the FCA is restricting the London ETPs to professional investors only.
The FCA had previously banned crypto derivatives, including ETPs, in January 2020. However, with such products widely available in Europe for several years and following the U.S. spot ETFs approvals, the regulator adjusted its stance, maintaining the ban for retail investors.
WisdomTree’s products will have fees of 35 basis points, while 21Shares has not yet disclosed their fee structure. Neither Invesco, based in Atlanta, Georgia, nor the LSE responded to CoinDesk’s request for further comment.
