The London Stock Exchange (LSE), the 11th largest stock exchange in the world by trading volume, has launched Bitcoin ETPs from 21Shares and WisdomTree.
The Financial Conduct Authority (FCA), London’s top financial regulator, approved its listing last week. However, because regular investors cannot purchase these ETPs, they are unlikely to be in high demand. The FCA expressed worry about the potential harm these products could pose to retail customers.
Diversification requirements limit European issuers from issuing exchange-traded funds (ETFs) for a single commodity, such as Bitcoin.
Bitcoin ETPs Live on Other Stock Market
Cryptocurrency ETPs have been operating for years and provide buyers with a comparable investment experience. These products claim to offer the same level of openness and investor protection.
The main distinction is that ETPs accept the underlying asset in kind, which implies that authorized participants or issuers exchange the crypto asset for shares in the associated ETP. For example, US-based Bitcoin ETFs like BlackRock’s IBIT exchange cash for ETP shares.
Bitcoin ETPs from 21Shares and WisdomTree are also listed on stock markets in Germany and Switzerland. 21Shares According to Ophelia Snyder, the UK capital market is one of the most liquid in the world.
Meanwhile, the UK’s top financial regulator remains wary of the industry. It recently justified its slow rate of approving cryptocurrency applications, arguing that it wants to prioritize confidence. #Bitcoin News