Key Takeaways:
- The London Stock Exchange (LSE) will list Bitcoin and Ethereum ETPs starting May 28, following approval from the UK’s Financial Conduct Authority (FCA).
- WisdomTree’s Physical Bitcoin and Physical Ethereum ETPs will be available exclusively to professional and institutional investors due to a ban on retail crypto derivatives.
- The FCA’s approval requires the ETPs to be physically backed, non-leveraged, and supported by a licensed custodian holding assets in cold storage.
The London Stock Exchange (LSE) will list Bitcoin and Ethereum exchange-traded products (ETPs) following approval from the UK’s Financial Conduct Authority (FCA) on May 22.
WisdomTree’s Physical Bitcoin and Physical Ethereum ETPs will start trading on May 28, available only to professional and institutional investors due to a 2021 ban on retail trading of crypto derivatives.
JUST IN: 🇬🇧 #Bitcoin and Ethereum ETPs approved for listing on the London Stock Exchange.
— Watcher.Guru (@WatcherGuru) May 22, 2024
Alexis Marinof from WisdomTree highlighted that the FCA’s approval simplifies investment in crypto-backed products for UK-based professional investors.
The LSE had opened applications for crypto ETPs in March, with approved funds to be listed in May.
To gain FCA approval, the ETPs must be physically backed by Bitcoin or Ether, non-leveraged, and supported by an Anti-Money Laundering licensed custodian holding assets in cold storage.
This move follows the success of spot Bitcoin ETFs in the U.S., prompting other countries, including Hong Kong, to offer similar products.
Re the news that bitcoin ETFs have been approved to trade on the London Stick exchange, it’s true but few imp details: only physically backed allowed, two wisdomtree ones to start and retail ban still in effect. Good piece on it from ETF Stream: https://t.co/TFLVr2bm2Q pic.twitter.com/W1fJ6SEpNL
— Eric Balchunas (@EricBalchunas) May 22, 2024
However, Hong Kong’s ETFs did not achieve the same market impact, attracting only $22.5 million on their first trading day.
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