The UK's Financial Conduct Authority (FCA) has approved several cryptocurrency-based investment funds to be listed on the London Stock Exchange.
While investors await the possible approval of Ethereum cash exchange-traded funds (ETFs) in the United States, the United Kingdom has surprised by announcing the listing of Bitcoin and Ethereum electronic trading products (ETPs) on the London Stock Exchange, considered one of the largest in the world.
WisdomTree, a New York-based investment fund manager, was one of the first issuers to receive regulatory approval from the FCA.
At the time of writing this article, the web page from the UK financial authority shows that Invesco Digital y 21Shares They are also listed to offer publicly traded cryptocurrency investment products to their clients.
Cryptocurrency ETPs to be listed in the UK next week
WisdomTree’s FCA-approved Bitcoin and Ethereum investment products will reportedly begin trading on the London Stock Exchange on May 28 and will initially be available to professional and institutional investors.
The approval of these cryptocurrency investment products follows statements made by the UK financial authority a few weeks ago, in which it announced that it would no longer oppose the participation of professional and institutional investors in the crypto market.
In March of this year, the authority revealed that it would lift the ban established in 2020 on the listing and trading of these crypto-asset financial product offerings and that it would approve their launch on the London Stock Exchange.
With this, the UK joins the list of jurisdictions where professional investors can access the cryptocurrency market through a regulated route for the first time. Hong Kong, one of the world's most important financial markets, also authorized the listing and launch of Bitcoin and Ethereum spot investment funds last April.
The nuances of FCA approval
Overall, the listing of cryptocurrency investment products on the London Stock Exchange is good news. However, the FCA's approval of these listed products has its nuances.
ETF Stream reporter Theo Andrew stressed that the UK ban on retail investors participating in cryptocurrency investments remains in place. In addition to this, he stressed that cryptocurrency exchange-traded products, in order to be approved on the London Stock Exchange, must be physically backed, not leveraged and offer exposure only to Bitcoin or Ethereum.
