Investors in the UK can now trade exchange-traded products that track Bitcoin and Ethereum through the London Stock Exchange, as the country narrows the gap with other financial leaders in digital assets.
The move comes after the Financial Conduct Authority (FCA) last week approved the first exchange-traded products from issuers including WisdomTree and 21Shares.
21Shares said Tuesday it has launched four new exchange-traded bills (ETNs) backed by physical collateral. The offerings include: 21Shares Bitcoin ETN, 21Shares Ethereum Staking ETN, 21Shares Bitcoin Core ETN and 21Shares Ethereum Core ETN.
Competitor WisdomTree has also entered the fray with two physical-backed ETPs: the WisdomTree Physical Bitcoin ETF and WisdomTree Physical Ethereum ETF.
Despite owning Bitcoin or Ether directly, these new products are restricted to professional investors only, according to FCA regulations. This stricter approach contrasts with the United States, where recently approved Bitcoin ETFs manage a total of $59 billion. That’s nearly five times the total volume of cryptocurrency trading in Europe.
Nonetheless, Alex Pollak, head of UK-based 21Shares, predicted that the UK will become Europe’s leading cryptocurrency ETF market within three years. However, he believes that 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 British Parliament, urged the FCA to review its ban on making cryptocurrency ETNs available to retail investors. Expressing concern over the nation’s delayed position, he said the public would be deprived of opportunities.
US surprises market with early approval of Ethereum ETFs
Elsewhere, the U.S. Securities and Exchange Commission (SEC) gave the green light to the issuance of Ethereum ETFs last week. This marked a dramatic reversal in the market, as analysts had not expected the decision to be approved as early as May.
The move puts pressure on South Korean regulators to follow suit and potentially allow similar investments in cryptocurrencies.
