News
The London Stock Exchange is set to list cryptocurrency ETPs for the first time
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The exchange-traded products of WisdomTree and 21Shares will begin trading on the London Stock Exchange on May 28.
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Invesco’s product prospectus has also been approved by the Financial Conduct Authority.
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The listings follow the first approvals from the FCA since it eased its stance on crypto ETPs, after banning them in 2020.
The London Stock Exchange (LSE) will list exchange-traded crypto products (ETPs) for the first time later this month, after the prospectuses of WisdomTree (WT) and 21Shares were approved by the Financial Conduct Authority (FCA).
New York-based WisdomTree (WT) has received approval to list its Physical Bitcoin (BTCW) and Physical Ethereum (ETHW) ETPs, which start trading on May 28th. Zurich-based 21Shares has been approved for bitcoin {{BTC}} and ether {{ETH}} products and may begin trading around the same time. A prospectus from Invesco was also approvedalthough the company made no further comment.
The UK approval comes several months after the January green light for spot bitcoin ETFs in the US. Similar products have been traded in various European jurisdictions for several years. Both WisdomTree and 21Shares were among the firms to approve spot ETFs in the US in January.
The FCA said in March it would not object requests from financial institutions seeking to list ETPs for professional investors. The LSE has confirmed that it will accept applications for bitcoin {{BTC}} and ether {{ETH}} products in the second quarter. Unlike products in Europe and the US, however, the FCA allows London ETPs to be available to professional investors only.
The FCA introduced a ban on crypto derivatives products, including ETPs, in January 2020. However, as such products have been widely available in Europe for several years, and following the approval of the listing of spot ETFs in the US, the The regulator has changed its position. Keeps ban on retail investors in place.
WisdomTree’s products will carry fees of 35 basis points, while 21Shares has not yet disclosed its own.
Neither Atlanta, Georgia-based Invesco nor LSE responded to CoinDesk’s request for further comment.
To know more: DWS, Galaxy Digital List Exchange-Traded Commodities offering exposure to BTC and ETH in Germany
UPDATE (May 22, 12:35 UTC): He adds a line about 21Shares and Invesco also getting their prospectuses approved.
UPDATE (May 22, 2.37pm UTC): Rewrites the title and beginning of the story to reflect the 21Shares and Invesco applications. The story previously focused primarily on WisdomTree. It adds that Invesco and LSE have been contacted for comment.