London is bracing for an influx of exchange-traded cryptocurrency products, sparking enthusiasm among major cryptocurrency ETF providers.
As London prepares to embrace a new era of exchange-traded crypto products (ETPs), financial giants such as 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 easing of regulations by the Financial Conduct Authority (FCA) signals a notable shift, yet criticism is emerging as the FCA is still preventing retail investors from accessing exchange-traded cryptocurrency products on the London Stock Exchange. While Bradley Duke, chief strategist at ETC Group, Europe's largest cryptocurrency fund, stressed readiness to offer products on the exchange, he also expressed hope that the ban on retail sales will be lifted in the near future.
He added: “The London Stock Exchange is a very important market for us and we will certainly list products when possible, and preparations are now underway. We hope that the retail ban will be lifted soon after.” Bradley Duke
Other major European cryptocurrency players, such as VanEck, CoinShares and WisdomTree, have also expressed interest in engaging with the London Stock Exchange regarding new listing opportunities.
However, the financial watchdog's “professional investors only” limit has failed to attract every active issuer in the European exchange-traded cryptocurrency market, which has a total of $14.2 billion, the report notes. For example, although Mandy Chiu, Head of Financial Product Development at 21Shares, commented positively on the approval of exchange-traded cryptocurrency products on the London Stock Exchange, calling the move “encouraging,” she noted that The company will continue to “monitor” the situation and has done so. It has no plans for any of the listed products in the UK as of press time.
As previously reported by crypto.news, the London Stock Exchange plans to start accepting applications for exchange-traded crypto notes (ETNs) for Bitcoin (BTC) and Ethereum (ETH) in the second quarter of 2024. However, the exchange stressed that these offers and will not be Access is only available to institutional entities such as investment companies, credit institutions, pension funds and insurance companies.
This decision contrasts with the trend observed in other countries, where individual investors have been given access to these investment instruments. However, the FCA's decision marks the end of its comprehensive ban on exchange-traded cryptocurrency products, bringing them more in line with the regulatory frameworks of Europe, Australia, Brazil, Canada and the United States.
