FCA Approves Listing of Bitcoin and Ethereum-based ETPs on London Stock Exchange
Summary:
The Financial Conduct Authority (FCA) has approved the listing of Bitcoin and Ethereum-based Exchange-Traded Products (ETPs) on the London Stock Exchange (LSE). Set to debut on May 28th, these will be the UK's first crypto ETPs. The accessibility will be limited to professional and institutional investors due to the retail ban on crypto trade enacted in January 2021. To receive FCA approval, the crypto ETPs must be backed by Bitcoin (BTC) or Ether (ETH), and not be leverage-dependent. This move marks a growing global trend in increasing crypto accessibility for investors.
Exchange-Traded Products (ETPs) routed in Bitcoin and Ethereum have been given the green light by the Financial Conduct Authority (FCA) for listing on the London Stock Exchange (LSE). This event, slated for May 28th, marks the first time crypto-centric ETPs have appeared on the UK's trading scene. The news comes via ETF Stream and announces the arrival of WidomTree’s Bitcoin ETP (WBTC) and Ethereum ETP (WETH). These will be accessible solely to professional and institutional investors due to the retail prohibition on the trade and sale of crypto derivatives and ETPs implemented in January 2021. WisdomTree received the approval of their ETP prospectus late, almost two months post the public notice from LSE. Alexis Marinof, European Head at WisdomTree, maintains that this approval streamlines the investment process for UK-based professional investors looking to delve into crypto-based products. The LSE had publicly announced on March 25th that submissions for cryptocurrency ETPs were open until April 8th, with approved funds listing the subsequent month, dependent on FCA approval. Approval demands that the crypto ETPs are entirely supported by Bitcoin (BTC) or Ether (ETH), not leverage dependent, and that issuers collaborate with an Anti-Money Laundering accredited custodian residing within the UK, US, or EU. The custodian must also keep the underlying assets in cold storage. The global rise in crypto accessibility has stemmed largely from the United States Securities and Exchange Commission approving Bitcoin ETFs, which saw billions being funneled into these ETFs weekly. Hong Kong is another region that has welcomed Bitcoin and Ether ETF listings. These ETFs offered investors the ability to purchase and redeem units instantly using Bitcoin or Ether. Yet, they fell short of their US counterparts, garnering only $22.5 million on debut trading day.
Published At
5/22/2024 3:15:50 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.