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These ETNs will be available in both British pounds (GBP) and US dollars (USD), offering flexibility to investors.
21Shares has officially launched four physically backed crypto exchange-traded notes (ETNs) on the London Stock Exchange (LSE), marking its entry into the UK market. According to a press release, these ETNs are designed for professional investors in the region.
The launch comes in response to a new regulatory environment in the UK. The Financial Conduct Authority (FCA) recently announced that professional investors could access Bitcoin and Ethereum-backed exchange-traded notes. This regulatory change has prompted issuers like 21Shares to bring these products to market where there is already demand for it.
Users Can Now Purchase Crypto ETNs in Both GBP and USD
The Bitcoin and Ethereum ETNs was approved by the UK financial regulator last week, allowing the issuers to offer their customers access to the products on a regulated exchange. These offerings have now hit the London stock exchange.
However, according to the FCA rules, the products are only available for professional investors unlike in the United States where retail traders are allowed to access the market. The products such as the 21Shares Bitcoin ETN and 21Shares Ethereum Staking ETN will be traded on the exchange under the ticker (ABTC LN) and (AETH LN).
These ETNs will be available in both British pounds (GBP) and US dollars (USD), offering flexibility to investors. The company said the introduction of the products into the UK market marks a new milestone in its global expansion plan. 21Shares wants to offer users from across the world the opportunity to trade crypto related products in a regulated, transparent, and secure platform.
Ophelia Snyder, co-founder of 21Shares, sees the UK market as one of the world’s most deep and liquid capital markets.
“The UK is one of the deepest, most-liquid capital markets in the world. As institutional interest in cryptocurrencies grows, it is only natural that London Stock Exchange hosts responsible, properly-constructed funds offering access to these markets,” said Snyder.
UK Could Become Home to Crypto ETNs in Three Years
Alex Pollak, head of UK for 21Shares, told Yahoo Finance that the FCA approval for the launch of the new products could potentially make the UK the crypto hub of Europe.
He believes the listing of Bitcoin and Ethereum ETNs on the LSE signals progress towards crypto adoption in the British region. Pollak also predicted that the market could see massive growth within three years if the FCA continues to support the industry.
“I think the fact that these products will now be available on the London Stock Exchange does show progress and I think within three years from now the UK will be home to the largest crypto exchange-traded fund market in Europe,” Pollak said.
However, he also mentioned that the real game-changer would be lifting the ban on retail traders, allowing broader participation in the market.
