Crypto ETPs to Debut on London Stock Exchange by ETC, CoinShares, WisdomTree

London is gearing up for a major influx of crypto exchange-traded products (ETPs), igniting excitement among leading crypto ETF providers. The Financial Times has disclosed that giants in the financial sector, such as CoinShares, WisdomTree, and the ETC Group, are keenly exploring opportunities to list their products on the London Stock Exchange (LSE). This move comes as the Financial Conduct Authority (FCA) eases regulations, marking a pivotal shift in the market.

Despite this progress, the FCA maintains a restriction that only allows professional investors to access these crypto ETPs on the LSE. This decision has sparked debate, with many industry players, including Bradley Duke of the ETC Group, Europe’s top crypto fund, expressing hope for an eventual lift of this ban for retail investors. Meanwhile, other significant European entities like VanEck, CoinShares, and WisdomTree have shown a keen interest in listing new offerings on the LSE.

The FCA’s stance to limit access to “professional investors only” has deterred some issuers active in the European crypto ETP market, which collectively holds assets worth $14.2 billion. Mandy Chiu from 21Shares acknowledged the approval of crypto ETPs on the LSE as a positive step but mentioned that her firm would continue to “monitor” the situation without immediate plans for UK-listed products.

Emerging Opportunities in London’s Crypto Market

The London Stock Exchange is set to begin accepting applications for Bitcoin (BTC) and Ethereum (ETH) crypto exchange-traded notes (ETNs) in the second quarter of 2024. However, these offerings will be limited to institutional investors, including investment firms and pension funds. This approach contrasts with policies in other countries where individual investors can access such investment vehicles.

The FCA’s move to end its general prohibition on crypto ETPs brings the UK’s regulatory framework in closer alignment with those of Europe, Australia, Brazil, Canada, and the US, despite the ongoing restrictions for retail investors. This development represents a critical step forward for the cryptocurrency industry in London, promising new avenues for growth and investment.