ETC Group, CoinShares, and WisdomTree to introduce cryptocurrency ETPs on London Stock Exchange
London is preparing to welcome a wave of crypto exchange-traded products (ETPs), which has sparked excitement among major crypto ETF providers. CoinShares, WisdomTree, and ETC Group are among the financial giants eagerly looking to list their offerings on the London Stock Exchange (LSE), according to the Financial Times.
The Financial Conduct Authority (FCA) has relaxed regulations, indicating a notable shift. However, the FCA still prohibits retail investors from accessing crypto ETPs on the LSE, which has drawn criticism. Bradley Duke, chief strategist of ETC Group, expressed readiness to introduce products on the exchange but also hoped for the retail ban to be lifted soon.
Other major European crypto players, including VanEck, CoinShares, and WisdomTree, have also shown interest in engaging with the London Stock Exchange for new listing opportunities.
However, the FCA’s restriction to “professional investors only” has failed to attract all issuers active in the European crypto ETP market, which has a total value of $14.2 billion. Mandy Chiu, head of financial product development at 21Shares, commented positively on the approval of crypto ETPs on the LSE but mentioned that the firm would continue to monitor the situation and had no plans for any U.K.-listed products at the moment.
As previously reported, the London Stock Exchange plans to accept applications for the admission of Bitcoin (BTC) and Ethereum (ETH) crypto exchange-traded notes (ETNs) in Q2 2024. However, these offerings will only be accessible to institutional entities such as investment firms, credit institutions, pension funds, and insurance companies.
This decision diverges from the trend observed in other countries, where individual investors have been given access to such investment vehicles. Nevertheless, the FCA’s decision marks the end of its blanket ban on crypto ETPs and aligns it more closely with the regulatory frameworks of Europe, Australia, Brazil, Canada, and the U.S.
