London braces for an influx of crypto exchange-traded products, sparking enthusiasm among large crypto ETF providers.
As London prepares to embrace a new era of crypto exchange-traded products (ETPs), financial giants like CoinShares, WisdomTree, and ETC Group, are eagerly eyeing opportunities to list their offerings on the London Stock Exchange (LSE), the Financial Times has learned.
The relaxation of regulations by the Financial Conduct Authority (FCA) signals a noticeable shift, yet criticism arises as the FCA still bars retail investors from accessing crypto ETPs on the LSE. While Bradley Duke, chief strategist of ETC Group, Europe’s largest crypto fund, emphasized readiness to introduce products on the exchange, he also expressed hope for a lifting of the retail ban in the near future.
“The LSE is such an important market for us we definitely will list products when possible and preparation is under way. We hope the retail ban will be lifted soon after.” Bradley Duke
Other major European crypto players such as VanEck, CoinShares, and WisdomTree also expressed interest in engaging with the London Stock Exchange regarding new listing opportunities.
However, the FCA’s limit to “professional investors only” has failed to attract every issuer active in the European crypto ETP market, which boasts a combined sum of $14.2 billion, the report notes. For example, even though Mandy Chiu, head of financial product development at 21Shares, positively commented on the approval of crypto ETPs on the LSE, calling the move “encouraging,” she noted that the firm would continue to “monitor” the situation and did not have plans for any U.K.-listed products as of press time.
As crypto.news reported earlier, the London Stock Exchange plans to start accepting applications for the admission of Bitcoin (BTC) and Ethereum (ETH) crypto exchange-traded notes (ETNs) in Q2, 2024. However, the exchange emphasized that these offerings will only be accessible to institutional entities such as investment firms, credit institutions, pension funds, and insurance companies.
This decision contrasts with the trend observed in other countries, where individual investors have been granted access to such investment vehicles. Nonetheless, the FCA’s decision marks the end of its blanket ban on crypto ETPs, aligning it more closely with the regulatory frameworks of Europe, Australia, Brazil, Canada, and the U.S.
