UK’s First Bitcoin and Ethereum Spot ETPs Begin Trading on London Stock Exchange
The London Stock Exchange (LSE), the world’s sixth-largest securities exchange, has officially commenced trading Bitcoin (BTC) and Ethereum (ETH) exchange-traded notes (ETNs) as of Tuesday. This marks a significant milestone with the introduction of these cryptocurrency ETNs on the LSE.
Launch Announcement
According to the LSE, the trading of Ethereum and Bitcoin ETNs began on May 28, 2024. The exchange expressed its enthusiasm:
“We are delighted to announce the launch of cryptocurrency ETNs on the London Stock Exchange, welcoming the products from WisdomTreeEU and 21Shares.”
Understanding ETNs
ETNs are a type of exchange-traded product (ETP) that differ from exchange-traded funds (ETFs). Unlike ETFs, which are backed by underlying assets, ETNs are debt instruments that track an index.
However, WisdomTree, one of the approved ETP creators, has stated that its products—WisdomTree Physical Bitcoin (BTCW) and WisdomTree Physical Ethereum (ETHW)—will be 100% physically backed ETPs.
“WisdomTree is among the first issuers to receive FCA approval for a crypto ETP prospectus. Our 100% physically backed Bitcoin and Ethereum ETPs (WisdomTree Physical Bitcoin and WisdomTree Physical Ethereum) will be listed on the London Stock Exchange soon, with the launch expected on Tuesday, May 28. These ETPs will be available exclusively for professional investors.”
21Shares’ Entry into the UK Market
Additionally, 21Shares announced that four of its fully backed crypto asset ETNs will also be launched as ETPs.
“21Shares, the world’s largest crypto ETP issuer, is pleased to announce the launch of four physically backed crypto asset ETNs on the London Stock Exchange, available for professional investors. Each ETN will be listed in both GBP and USD. This launch marks 21Shares’ official entry into the UK market.”
Trading Commences
All six ETN products began trading on the London Stock Exchange on Tuesday, marking a significant step in the integration of cryptocurrency financial instruments into traditional markets.
