The first Bitcoin exchange-traded products (ETPs) have made their debut on the London Stock Exchange after receiving approval from the UK Financial Conduct Authority. Asset managers WisdomTree and 21Shares both listed Bitcoin traded products on the London Stock Exchange today.
New: 🇬🇧#Bitcoin Trading on the ETPs will begin on the London Stock Exchange today.
are you ready? 👀 pic.twitter.com/llurxr1NjC
– Bitcoin Magazine (@BitcoinMagazine) May 28, 2024
Last week, the Financial Conduct Authority (FCA) gave the green light to list Bitcoin ETNs on the exchange. Today's launch has enabled issuers who have been waiting for regulatory approval to bring Bitcoin ETNs to the London Stock Exchange.
21Shares has listed two Bitcoin products: 21Shares Bitcoin ETN (IBTC) and 21shares Bitcoin Core ETN (CBTC). Meanwhile, WisdomTree launched physical Bitcoin ETN (BTCW).
All ETNs provide exposure to the price of Bitcoin. It is currently only available to professional investors under FCA rules. “But the game changer for the UK will be when the hash ban is lifted; there is a hash ban on trading bitcoin and ether ETNs at the moment,” said Alex Pollack, UK head of 21Shares.
Today's debut is a milestone for both Bitcoin adoption and London's aspirations to become a hub for digital assets. Other major financial centers such as the US, Europe and Hong Kong already offer regulated Bitcoin funds, putting pressure on the financial watchdog to catch up.
“The UK is one of the deepest and most liquid capital markets in the world,” emphasized Ophelia Snyder, co-founder of 21Shares.
The FCA is taking a gradual approach to opening up its market. The listing of Bitcoin ETNs allows professional investors to gain regulated exposure to crypto assets on the London Stock Exchange for the first time.