The first bitcoin exchange-traded products (ETPs) debuted on the London Stock Exchange after receiving approval from the UK Financial Conduct Authority. Asset managers WisdomTree and 21Shares list bitcoin ETPs on the LSE today.
<blockquote class="twitter-tweet”>
NEW: twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin The ETPs will begin trading today on the London Stock Exchange.
You are ready? pic.twitter.com/llurxr1NjC
– bitcoin Magazine (@BitcoinMagazine) twitter.com/BitcoinMagazine/status/1795374448763388161?ref_src=twsrc%5Etfw”>May 28, 2024
Last week, the FCA gave the green light for bitcoin ETNs to be listed on the exchange. This enabled today's launch by issuers who had been waiting for regulatory clearance to bring bitcoin ETNs to the LSE.
21Shares listed two bitcoin products: the 21Shares bitcoin ETN (ABTC) and 21Shares bitcoin Core ETN (CBTC). Meanwhile, WisdomTree launched its physical bitcoin ETN (BTCW).
All ETNs provide exposure to the price of bitcoin. They are currently only accessible to professional investors under FCA rules. “But the game changer in the UK will be when the retail ban is lifted – there is currently a retail ban on trading bitcoin and ether ETNs,” said Alex Pollak, UK director at 21Shares.
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Today's debut is a milestone for both bitcoin adoption and London's aspirations to be a digital asset hub. Other major financial centers such as the United States, Europe and Hong Kong already offer regulated bitcoin funds, putting pressure on the FCA to catch up.
21Shares co-founder Ophelia Snyder highlighted: “The UK is one of the deepest and most liquid capital markets in the world.”
The FCA is taking a phased approach to opening up its market. Listing bitcoin ETN allows professional investors to gain regulated exposure to crypto assets on the LSE for the first time.
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