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London Stock Exchange to Launch Crypto ETPs Later This Month

London Stock Exchange to Launch Crypto ETPs Later This Month

NEWS

The London Stock Exchange (LSE) is set to list crypto exchange-traded products (ETPs) for the first time later this month, following the approval of prospectuses from WisdomTree (WT) and 21Shares by the Financial Conduct Authority (FCA).

New York-based WisdomTree received approval to list its Physical Bitcoin (BTCW) and Physical Ethereum (ETHW) ETPs, with trading expected to commence on May 28. Zurich-based 21Shares also gained approval for its bitcoin (BTC) and ether (ETH) products, which are anticipated to start trading around the same time. Additionally, a prospectus from Invesco was approved, although the firm has not provided further comments.

The approval in the UK follows several months after the U.S. greenlighted spot bitcoin exchange-traded funds in January. Similar products have been available in various European jurisdictions for several years. Both WisdomTree and 21Shares were among the firms to have spot ETFs approved in the U.S. earlier this year.

In March, the FCA stated it would not object to financial institutions listing ETPs for professional investors. The LSE confirmed it would accept applications for bitcoin (BTC) and ether (ETH) products in the second quarter. Unlike the U.S. and Europe, the FCA is restricting access to these ETPs to professional investors only.

In January 2020, the FCA introduced a ban on crypto derivatives products, including ETPs. However, given their availability in Europe for several years and recent U.S. spot ETF approvals, the FCA revised its position. The ban remains in place for retail investors.

WisdomTree’s products will carry fees of 35 basis points, while 21Shares has not yet disclosed its fees.

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