The UK's Financial Conduct Authority (FCA) has approved the first cryptocurrency exchange-traded products (ETPs), marking a significant milestone in the country's embrace of digital assets.
WisdomTree Inc., a leading asset management firm, announced it has received FCA approval to list Bitcoin and Ethereum ETPs on the London Stock Exchange. Trading for these products could begin as early as May 28, according to a recent press release.
Invesco Digital Markets also confirmed it has secured FCA approval for its Bitcoin ETP, with transactions expected to start on the same day. Other issuers, including ETC Group, 21Shares, and CoinShares, have similarly applied to list their crypto products in the UK.
FCA's Restrictive Approach: ETPs for Professional Investors Only, Following US Bitcoin ETF Trends
The FCA's rules stipulate that these ETPs will be available only to professional investors, reflecting a more cautious approach compared to the United States. In the US, a new group of Bitcoin ETFs approved in January collectively manage a total of $59 billion.
As of the FCA's deadline at 12pm on Wednesday, endorsements for listings included those from WisdomTree, 21Shares, and Invesco Digital Markets Plc. These endorsements are visible on the FCA's website.
The FCA's approval of cryptocurrency ETPs for Bitcoin and Ethereum signifies a major development in the UK's digital asset landscape. By aligning with other financial centres and offering these products on the London Stock Exchange, the UK is taking a significant step forward in the adoption and regulation of digital assets.