The United Kingdom’s Financial Conduct Authority (FCA) has officially approved the first cryptocurrency exchange-traded products (ETPs), marking an important development in the integration of digital assets into the country’s financial landscape.
The move brings the U.K. in line with global financial centers that have embraced trading in digital assets.
Regulatory Background and International Comparison
WisdomTree has announced that it has received approval from the FCA to list two physically-backed crypto ETPs on the London Stock Exchange, tracking Bitcoin and Ethereum respectively.
The products are set to begin trading on May 28, Bloomberg reported, highlighting the rapid progress from regulatory approval to market availability.
WisdomTree’s move is part of a wider trend, with other issuers such as ETC Group, 21Shares and CoinShares having also applied to list their crypto products in the UK.
While the products will hold Bitcoin and Ethereum directly, they will only be available to “professional investors” under FCA rules.
This approach is stricter than that of the United States, where the recent approval of bitcoin ETFs has seen assets in those funds total around $59 billion, far higher than the totals of similar products in Europe.
Internationally, cryptocurrency ETPs have been listed on several European stock exchanges for years. The United States has seen considerable success with these products, especially after the Securities and Exchange Commission’s (SEC) January approval, which helped drive Bitcoin to all-time highs.
Hong Kong has also recently entered the market, though according to Bloomberg, the reaction from investors has been rather “cold.”
Crypto Spot ETF Performance
The launch of these products in the UK is expected to further energise the market, particularly as similar products in the US continue to experience strong inflows.
Data showed that spot Bitcoin exchange-traded funds in the United States experienced net inflows for the seventh consecutive day, with approximately $305 million flowing into these products, with BlackRock’s iShares Bitcoin Trust and Fidelity Wise Origin Bitcoin Fund contributing significantly.
Meanwhile, in Hong Kong, China AMC’s recently launched Ethereum ETF has also seen significant inflows, indicating growing investor interest in these products. This positive flow appears to be driven by speculation surrounding the possible approval of similar ETF products in the United States.
Bloomberg analysts Eric Balchunas and James Seyffart recently raised the probability of the U.S. SEC approving an Ethereum spot ETF from 25% to 75%, indicating a potential shift in regulatory attitudes.
It was previously reported that the U.S. Securities and Exchange Commission had asked the exchange to amend its 19b-4 application.
In response, CboeBZX has so far filed amended applications for several ETFs, including the Franklin Ethereum Trust, Fidelity Ethereum Fund, VanEck Ethereum Trust, Invesco Galaxy Ethereum ETF, and ARK 21Shares Ethereum ETF.
Conclusion:
The first batch of cryptocurrency ETPs approved by the UK Financial Conduct Authority (FCA) not only represents a milestone in the UK's financial market innovation, but also reflects its leading position in the global financial technology field. With the launch of Bitcoin and Ethereum ETPs on the London Stock Exchange, the UK market is expected to usher in a new wave of vitality, echoing the strong capital inflows in the US market.
Despite the restrictions on investor access, the UK's move heralds that cryptocurrency products will be more widely integrated into the mainstream financial market, providing more choices for global investors while promoting the further maturity of cryptocurrency regulation and market practices. #交易所交易产品 #ETP #英国 #FCA