The UK’s Financial Conduct Authority (FCA) has paved the way for the first-ever listing of cryptocurrency exchange-traded products (ETPs) on the London Stock Exchange (LSE). This decision marks a significant shift in the regulator’s stance, reversing its previous ban on such offerings implemented in 2020.
Leading the charge are asset managers WisdomTree and 21Shares, both of whom have secured FCA approval for their prospectuses to list physically-backed Bitcoin and Ethereum ETPs on the LSE. Invesco has also received the green light, though details of their offering remain undisclosed.
The listings, expected to commence trading on May 28, will initially be restricted to professional investors only, as the FCA maintains its ban on retail access to these products for now.
Alexis Marinof, WisdomTree’s Head of Europe, hailed the FCA’s approval as “a significant step forward for the industry and UK-based professional investors seeking exposure to the asset class.” He expressed optimism that the move could catalyze greater institutional adoption, as many UK-based firms have faced barriers in gaining crypto exposure due to regulatory uncertainty.
WisdomTree’s Bitcoin and Ethereum ETPs will carry a competitive management expense ratio of 0.35%, positioning them among the most cost-effective institutional-grade crypto ETPs in Europe.