The UK Financial Conduct Authority (FCA) has authorized 21Shares, Bitwise, and WisdomTree to list Bitcoin and Ethereum exchange-traded products (ETPs) on the London Stock Exchange (LSE).
The decision comes shortly after the regulator lifted a four-year ban on retail access to crypto-linked exchange-traded notes.
The move represents a shift in the UK’s approach to digital assets, signaling growing institutional and retail integration under defined regulatory oversight. The three issuers, already established names in Europe’s crypto ETP market, will offer a mix of physically backed and staking-enabled products designed to replicate the price performance of Bitcoin and Ethereum within a regulated exchange environment.
Details of the BTC and ETH ETPs
According to the FCA’s authorization details, 21Shares has launched two physically backed ETPs tracking Bitcoin and Ethereum, with the Ethereum product featuring a staking yield component and an expense ratio starting from 0.1 percent.
Bitwise announced four ETPs, including its Core Bitcoin ETP and Ethereum Staking ETP, with fees temporarily reduced to 0.05 percent for initial investors.
WisdomTree, which had previously listed similar products for professional investors, now extends access to retail buyers, maintaining management fees of 0.15 percent for Bitcoin and 0.35 percent for Ethereum offerings.
Regulatory Context
Under the revised FCA policy, retail participation is restricted to ETPs referencing Bitcoin and Ethereum, and only when traded on FCA-recognized exchanges such as the LSE. These listings provide market access through regulated brokers and platforms that must conduct investor suitability checks before trading can occur.
Unlike unsecured debt instruments, the ETPs from the approved issuers have physical backing, meaning the underlying assets held in institutional custody with segregation and trustee oversight to reduce counterparty risk.
The FCA’s approval aligns the UK more closely with international markets such as the U.S., Canada, and the EU, where crypto-based exchange-traded products’ integration into regulated financial systems exists. Analysts note that this step enhances the UK’s position as a competitive hub for digital finance and could encourage further developments once the regulator completes its broader crypto framework by 2026. That framework could cover custody, stablecoins, staking, and lending services under standardized rules.
Trading of the newly approved Bitcoin and Ethereum ETPs could begin on the LSE this week.
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