First UK crypto ETPs to launch on May 28

Regulator’s ruling means WisdomTree and 21Shares bitcoin and ether products will be off limits to retail investors

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The UK’s first cryptocurrency exchange traded products are finally set to begin trading next week, almost a decade after the first such vehicles appeared in Sweden. WisdomTree and 21Shares have been given the green light by the Financial Conduct Authority, the City regulator, to list ETPs investing in “physical” spot bitcoin and ether, the two most popular digital tokens, on the London Stock Exchange on May 28

However, the ETPs — which form part of a barrage of similar vehicles expected to list on the LSE — will only be available to professional investors because the FCA has ruled that “crypto derivatives are ill-suited for retail consumers due to the harm they pose”.

The stance is in sharp contrast to stock exchanges across much of continental Europe, as well as Australia, Brazil, Canada, Hong Kong and the US, which offer crypto ETPs to both retail and institutional investors.$BTC