London Stock Exchange Introduces Bitcoin and Ethereum ETNs

This development follows the recent nod from the Financial Conduct Authority (FCA) for the first crypto ETPs, allowing issuers like WisdomTree and 21Shares to roll out their offerings.

21Shares seized the opportunity by launching four new physically-backed crypto exchange-traded notes (ETNs) on Tuesday. These include the 21Shares Bitcoin ETN, 21Shares Ethereum Staking ETN, 21Shares Bitcoin Core ETN, and 21Shares Ethereum Core ETN. Similarly, WisdomTree introduced two physically-backed ETPs: WisdomTree Physical Bitcoin and WisdomTree Physical Ethereum ETFs.

All these listings, along with those from Invesco Digital Markets, secured approvals showcased on the FCA's website on May 28.

Regulatory Constraints Shape London's Crypto ETP Market

Despite the availability of these crypto products, they are exclusively accessible to professional investors due to FCA regulations, excluding retail investors. This regulatory approach stands in contrast to that of the US, where recently approved Bitcoin ETFs boast a combined $59 billion in assets under management, dwarfing Europe's crypto vehicle trade volume nearly fivefold.

However, Alex Pollak, 21Shares' UK head, remains bullish about the UK's potential to lead Europe's crypto ETP market within three years. Nevertheless, he underscores the importance of broadening access to everyday investors to unlock the country's full potential in this sector.

Earlier this month, Alun Cairns, a Conservative UK Member of Parliament, urged the FCA to reconsider its ban on retail investors accessing crypto ETNs. Cairns voiced concerns about the UK's trailing position in the global crypto landscape, emphasizing the missed opportunities for the general public.

US SEC's Swift Approval Paves Way for Ethereum ETPs

In a surprising move, the US Securities and Exchange Commission (SEC) greenlit spot Ethereum ETPs ahead of expectations, signaling a potential shift in regulatory dynamics.

This decision adds pressure on South Korean regulators to follow suit and possibly introduce similar crypto investment avenues in their market. But