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Bitcoin ETPs are published on the London Stock Exchange
Alex Dovbnja
WisdomTree and 21Shares Bitcoin ETPs have started trading on the London Stock Exchange
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The Bitcoin exchange-traded products offered by 21Shares and WisdomTree have disappeared live on the London Stock Exchange (LSE), the eleventh largest stock exchange in the world by trading volume.
AS reported by U.Todaylast week the Financial Conduct Authority (FCA), London’s main financial regulator, got the green light for their listing.
However, they are unlikely to attract strong demand as retail investors will not be able to purchase these ETPs. The FCA has expressed concern about the potential harm these products could cause to retail buyers.
European regulations prevent issuers from offering exchange-traded funds (ETFs) for a single commodity like Bitcoin due to diversification rules.
Cryptocurrency ETPs, which have been around for years, offer buyers a somewhat similar investment experience. These products also claim to offer the same level of transparency and investor protection.
The key difference is that ETPs accept the underlying asset in kind, meaning that participants or authorized issuers themselves exchange the crypto asset for shares of the corresponding ETP. For comparison, US-based Bitcoin ETFs, such as BlackRock’s IBIT, exchange cash for ETP shares.
21Shares and WisdomTree Bitcoin ETPs are also available on stock exchanges in Germany and Switzerland.
21Shares Ophelia Snyder noted that the UK has one of the most liquid capital markets in the world.
The UK’s top financial regulator, however, remains cautious about the sector. He recently defended his slow pace of approving crypto applications, saying he wants to prioritize trust.
About the author
Alex Dovbnja
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience covering everything related to the burgeoning industry, from price analysis to Blockchain disruption. Alex has authored more than 1,000 stories for U.Today, CryptoComes, and other fintech media. He is particularly interested in regulatory trends around the world that are shaping the future of digital assets; he can be contacted at alex.dovbnya@u.today.