UK allows Bitcoin and Ethereum ETPs for retail investors for the first time

UK financial authorities have lifted restrictions on retail investor access to crypto asset (cryptocurrency) exchange-traded products (ETPs), and major asset managers have allowed Bitcoin (BTC) and Ethereum (ETH) ETPs.

On the 20th (local time), The Block reported that 21Shares, Bitwise, and WisdomTree listed their Bitcoin and Ethereum ETPs on the London Stock Exchange (LSE) and officially allowed retail investor trading. This move came 12 days after the UK Financial Conduct Authority (FCA) lifted earlier this month a four-year ban on sales of exchange-traded notes (ETNs) for cryptocurrencies to retail investors.

21Shares listed two physically backed ETPs each for Bitcoin and Ethereum, and some products include Ethereum staking functionality and a 0.1% fee reduction benefit. Russell Barlow, CEO, said, "This listing is an important turning point for the UK market and retail investors," and "allowing access to Bitcoin and Ethereum is the first step in creating an innovation-friendly financial environment."

WisdomTree also listed physically backed Bitcoin and Ethereum ETPs with fees of 0.15% and 0.35% respectively. Alexis Marinof, head of WisdomTree Europe, said, "The trading of crypto ETPs on the LSE main market demonstrates the market's maturity," and "transparency and accessibility are key to building trust."

BlackRock listed its iShares Bitcoin ETP on the LSE that day. Jane Sloan, head of BlackRock EMEA Global Product Solutions, said, "The number of crypto investors in the UK is expected to reach 4 million next year," and "this listing is an opportunity to increase access to digital asset investment through traditional financial platforms."

Bitwise plans to list Bitcoin and Ethereum ETPs on the 21st. Bradley Duke, head of Europe, said, "This listing will provide more investors in the UK, Europe’s largest investment market, with access opportunities."