Ethereum

United

Bitcoin

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Bitcoin and Ethereum-based exchange-traded products (ETPs) receive approval to debut on the London Stock Exchange.</li>
 <li>The ETPs are expected to begin trading on May 28, offering a new investment avenue for professional and institutional investors.</li>
</ul>
<p>Bitcoin and Ethereum-based ETPs are set to make their first appearance on the London Stock Exchange (LSE) following approval from the Financial Conduct Authority (FCA) on May 22.</p>
<h2 id="introduction-of-crypto-etps-in-the-uk">Introduction of Crypto ETPs in the UK</h2>
<p>WisdomTree’s physical Bitcoin ETP, denoted by the ticker WBTC, and the physical Ethereum ETP (WETH) will be the first set of crypto ETPs listed in the UK. Trading of these ETPs is projected to commence on May 28, as reported by ETF Stream. However, these ETPs will only be accessible to professional and institutional investors due to the retail ban on crypto trading and sale of derivatives and ETPs, which was enacted in January 2021.</p>
<p>The introduction of WisdomTree’s two ETPs comes nearly two months after the LSE’s public announcement. Alexis Marinof, head of Europe at WisdomTree, stated that the FCA approval of their crypto ETPs’ prospectus will simplify the process for UK-based professional investors to invest in crypto-backed products. Currently, they have to access crypto ETPs via overseas exchanges.</p>
<h2 id="fca-approval-and-global-crypto-accessibility">FCA Approval and Global Crypto Accessibility</h2>
<p>To secure FCA approval, the crypto ETPs must be denominated in Bitcoin or Ether, be physically backed, and be non-leveraged. The issuers are also required to team up with an Anti-Money Laundering licensed custodian in the United States, the UK, or the European Union, and hold the underlying assets in cold storage.</p>
<p>The approval of Bitcoin ETFs by the United States Securities and Exchange Commission and its subsequent success, which saw billions flow into these ETFs weekly, has inspired several other governments globally to provide crypto accessibility to investors.</p>
<p>Hong Kong, in addition to the U.K., also approved the listing of Bitcoin and Ether ETFs. These spot cryptocurrency ETFs from Hong Kong were considered a significant upgrade over their U.S. counterparts due to features like in-kind transfers and denominations in three fiat currencies. Investors can immediately purchase and redeem ETF units using Bitcoin or Ether. However, despite improved accessibility, these ETFs did not have the same impact as the US-based BTC ETFs, attracting only $22.5 million on the first trading day.</p>

Bitcoin and Ethereum ETPs Go Live on London Stock Exchange Following FCA Approval

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