The London Stock Exchange (LSE) is set to list cryptocurrency exchange-traded products (ETPs) for the first time later this month. This follows the Financial Conduct Authority’s (FCA) approval of prospectuses from WisdomTree (WT) and 21Shares.
New York-based WisdomTree received approval to list its Physical Bitcoin (BTCW) and Physical Ethereum (ETHW) ETPs, with trading expected to commence on May 28. Zurich-based 21Shares was also approved for bitcoin (BTC) and ether (ETH) products, with trading anticipated around the same time. Additionally, a prospectus from Invesco was approved, although the firm has not provided further details.
The approval in the U.K. comes several months after the U.S. green-lit spot bitcoin exchange-traded funds in January. Similar products have been available in various European jurisdictions for years. Both WisdomTree and 21Shares had their spot ETFs approved in the U.S. earlier this year.
In March, the FCA announced it would not object to requests from financial institutions aiming to list ETPs for professional investors. The LSE subsequently confirmed it would accept applications for bitcoin (BTC) and ether (ETH) products in the second quarter. Unlike their European and U.S. counterparts, the FCA’s approval limits the London ETPs to professional investors only.
Previously, the FCA had banned crypto derivatives, including ETPs, for retail investors in January 2020. However, given the widespread availability of such products in Europe and the recent U.S. approvals, the FCA has revised its stance, maintaining the ban only for retail investors.
WisdomTree’s ETPs will carry fees of 35 basis points, while 21Shares has not yet disclosed its fee structure. Neither Invesco nor the LSE responded to requests for further comment.