News
London Stock Exchange set to list crypto ETPs for the first time
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WisdomTree and 21Shares’ exchange-traded products are expected to 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 softened its stance on crypto ETPs, after banning them in 2020.
The London Stock Exchange (LSE) will list crypto exchange-traded products (ETPs) for the first time later this month after prospectuses for 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 it hopes to list. start trading on May 28. Zurich-based 21Shares has been approved for Bitcoin {{BTC}} and Ether {{ETH}} products and could begin trading around the same time. An Invesco prospectus was also approvedalthough the company made no further comment.
The approval in the UK comes several months after the January green light for Bitcoin spot exchange-traded funds in the US. Similar products have been trading in various European jurisdictions for several years. WisdomTree and 21Shares were among the companies whose spot ETFs were approved in the United States in January.
The FCA said in March it would not object to requests from financial institutions wishing 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. However, unlike products in Europe and the United States, the FCA allows London ETPs to be available only to professional investors.
The FCA introduced a ban on crypto derivatives products, including ETPs, in January 2020. However, with these products widely available in Europe for several years and following approvals for listing of spot ETFs in the US, the regulator adjusted his position. It maintains the ban on retail investors.
WisdomTree’s products will carry a 35 basis point fee, while 21Shares has yet to disclose theirs.
Neither Atlanta, Georgia-based Invesco nor the LSE responded to CoinDesk’s request for additional comment.
Learn more: DWS and Galaxy Digital List Exchange-Traded Commodities Offering BTC and ETH Exposure in Germany
UPDATE (May 22, 12:35 UTC): Adds a line about 21Shares and Invesco also having their prospectuses approved.
UPDATE (May 22, 2:37 p.m. UTC): Rewrote the title and top of the article to reflect the applications of 21Shares and Invesco. The story previously focused primarily on WisdomTree. Adds that Invesco and LSE have been contacted for comment.