The Financial Conduct Authority (FCA) has granted approval for Bitcoin and Ethereum exchange-traded products (ETPs) to be listed on the London Stock Exchange (LSE). This approval marks a milestone in the integration of digital assets into traditional financial markets, providing investors with regulated and secure avenues for cryptocurrency exposure.
The newly approved ETPs will be managed by 21Shares and CoinShares, two prominent firms in the cryptocurrency investment space. These products will enable investors to gain exposure to Bitcoin and Ethereum without directly holding the underlying assets, thereby mitigating some of the risks associated with cryptocurrency custody.
Hany Rashwan, CEO of 21Shares, expressed enthusiasm about the approval, stating, “This is a significant step forward in our mission to make cryptocurrency investments accessible to a broader audience. Listing on the London Stock Exchange, one of the world’s leading financial markets, underscores the growing acceptance of digital assets in mainstream finance.”
The ETPs are designed to track the performance of Bitcoin and Ethereum, providing institutional and retail investors with a regulated product that offers direct exposure to these leading cryptocurrencies. This development is expected to attract a new wave of investors who have been hesitant to enter the crypto market due to concerns about regulatory oversight and security.
CoinShares’ Chief Strategy Officer, Meltem Demirors, highlighted the importance of this move for the broader adoption of cryptocurrencies. “The FCA’s approval is a testament to the maturity and credibility of the cryptocurrency market. It paves the way for further innovation and integration of digital assets into the global financial ecosystem,” she said.
The introduction of Bitcoin and Ethereum ETPs on the LSE is anticipated to enhance market liquidity and provide a more straightforward investment vehicle for those looking to diversify their portfolios with digital assets. Additionally, this move aligns with the FCA’s broader efforts to establish a clear regulatory framework for cryptocurrencies, ensuring investor protection and market integrity.
