Yesterday the London Stock Exchange (LSE) announced the listing of Bitcoin (BTC) and Ethereum (ETH) Exchange-Traded Notes (ETNs), marking a significant milestone in the global adoption of cryptocurrency. The UK Financial Conduct Authority (FCA) approved these crypto funds last week, allowing the LSE to proceed with the listings. This move aligns the UK with the United States, which has already made strides in launching similar financial products.
The LSE revealed on May 25 that it would offer Bitcoin and Ethereum ETNs. Starting from April 8, applications for these ETNs could be submitted to the FCA. Last Wednesday, the FCA approved ETNs from three providers: WisdomTree, 21Shares, and Invesco. Following this approval, the LSE confirmed that these funds could begin trading today.
WisdomTree and 21Shares responded promptly to the approval and made their debut. 21Shares launched four new physically backed crypto ETNs: the 21Shares Bitcoin ETN, 21Shares Ethereum Strike ETN, 21Shares Bitcoin Core ETN, and 21Shares Ethereum Core ETN. WisdomTree introduced two products: the WisdomTree Physical Bitcoin ETF and the WisdomTree Physical Ethereum ETF.
An ETN, similar to an Exchange-Traded Fund (ETF), represents a debt instrument backed by the issuer rather than ownership of the underlying assets like Bitcoin or Ethereum, which is a key difference between the two.
These new offerings on the LSE will be available only to professional and institutional investors due to a 2021 ban on private cryptocurrency trading in the UK.
The UK’s approval follows the introduction of spot Bitcoin ETFs in the United States. Both WisdomTree and 21Shares have launched American Bitcoin spot ETFs. Additionally, the U.S. Securities and Exchange Commission (SEC) recently approved eight applications for Ethereum spot ETFs. 21Shares plans to launch its ETH fund in collaboration with ARK Invest, replicating their partnership for the BTC fund.
