In a groundbreaking shift for digital finance, UK retail investors can now trade Bitcoin and Ethereum exchange-traded products (ETPs) for the first time. Leading crypto asset managers—including 21Shares, Bitwise, WisdomTree, and BlackRock—have officially launched their crypto-backed ETPs on the London Stock Exchange (LSE), following a major regulatory change from the Financial Conduct Authority (FCA).
FCA Lifts Ban on Crypto ETPs, Opening the Market to the Public
The move comes after the FCA lifted a four-year ban on crypto exchange-traded notes (ETNs), previously restricted to institutional investors. This policy update marks a turning point, allowing everyday investors to access digital assets through regulated, transparent financial products.
The newly listed ETPs are physically backed by Bitcoin and Ethereum, giving investors direct exposure to the underlying assets without needing to hold cryptocurrencies themselves. These products are now available through standard brokerage platforms and can be held in popular tax-efficient wrappers like Individual Savings Accounts (ISAs) and Self-Invested Personal Pensions (SIPPs).
While crypto derivatives remain off-limits to retail investors, this phased approach signals the UK’s commitment to fostering innovation while maintaining strong investor protections.
Top Asset Managers Compete With Low Fees and Staking Features
21Shares was the first to list its Bitcoin and Ethereum ETPs on the LSE this week, offering low fees and staking options to attract cost-conscious investors. Not far behind, Bitwise and WisdomTree entered the market with similar strategies—slashing fees and promoting transparency to gain an early foothold.
BlackRock, the world’s largest asset manager, has also joined the crypto ETP race with its iShares Bitcoin ETP. The entrance of such heavyweight institutions is being seen as a major endorsement of crypto as a legitimate asset class.
Industry experts have praised the FCA’s decision as a pivotal moment in UK finance, opening the door for wider adoption of cryptocurrencies through secure and regulated investment vehicles.
