The London Stock Exchange (LSE) has begun trading Bitcoin (BTC) and Ethereum (ETH) exchange-traded notes (ETNs), a significant development that could position the UK as Europe's crypto
hub. Alex Pollak, head of UK for 21Shares, noted that this milestone highlights the UK’s progress in the crypto market.
Key Highlights:
Trading on LSE: Bitcoin and Ethereum ETNs are now available for trading on the LSE, providing UK investors access to these crypto assets.
21Shares' Role: As the largest issuer of crypto-backed exchange-traded products (ETPs), 21Shares celebrates this development, offering their products in both GBP and USD.
Professional Investors Only: Currently, these ETNs are restricted to professional investors due to a retail ban. Lifting this ban could significantly impact the UK’s crypto market.
According to Yahoo Finance, these ETNs trade and settle like regular shares, tracking the performance of underlying assets such as Bitcoin and Ethereum. This setup is similar to the spot Bitcoin exchange-traded funds (ETFs) approved by the US Securities and Exchange Commission (SEC) in January. Pollak emphasized the significance of this listing:
"The availability of these products on the London Stock Exchange shows progress. Within three years, the UK could host the largest crypto exchange-traded fund market in Europe."
Pollak added that 21Shares, with over 40 products listed on 11 exchanges globally, is proud to contribute to this historic moment by making Bitcoin and Ethereum products available to UK investors. However, he stressed that the ETNs currently cater only to professional investors. He believes lifting the retail ban will be transformative for the UK’s crypto market.
CryptoUK, a trade body for the digital asset sector, welcomed the FCA’s approval of physically-backed Bitcoin and Ethereum ETPs on the LSE. A spokesperson commented:
"This move is a step towards the UK’s goal of becoming a global crypto-asset hub. We advocate for more crypto-related instruments to be available to both institutional and retail investors to prevent the UK from falling behind US equity markets, which have seen increased interest in Bitcoin ETFs."
In April 2022, then-Chancellor and current UK Prime Minister Rishi Sunak announced plans to make the UK a “global crypto hub.” Despite this, the UK has lagged behind other major markets in adopting crypto-related securities.
The SEC’s approval of the first US-listed spot Bitcoin ETFs in January marked a significant advancement, and similar developments in Hong Kong have followed. The listing of Bitcoin and Ethereum ETNs on the LSE could be a gateway for mainstream capital to enter the crypto market, potentially revitalizing the UK’s position in the global crypto landscape. Photo by Isokivi, Wikimedia commons.