London has opened its main stock exchange to retail cryptocurrency investment, as major financial firms launched Bitcoin and Ethereum exchange-traded products following the lifting of a four-year ban.
The Financial Conduct Authority (FCA) earlier this month enabled a regulatory shift, allowing these products to be offered to everyday investors. This move aligns the United Kingdom with markets like the United States, Canada, and the European Union, where such regulated crypto investment vehicles are already available.
Global asset manager BlackRock, overseeing more than $13 trillion, debuted its iShares Bitcoin ETP under the ticker IB1T on the London Stock Exchange (LSE) on Monday. The product had previously traded on other European exchanges, including Xetra and Euronext Amsterdam.
In its first hour of LSE trading, the iShares Bitcoin ETP recorded a volume of 1,000 shares. Jane Sloan, BlackRock’s head of global product solutions for EMEA, highlighted the significance of the launch.
Sloan stated that with the UK’s crypto investor base projected to reach 4 million in the next year, ETPs like the iShares Bitcoin ETP unlock a safer gateway to digital assets through traditional investment platforms.
Other firms, including 21Shares, WisdomTree, and Bitwise, also introduced physically-backed crypto ETPs on the LSE. 21Shares launched ETPs for both Bitcoin and Ethereum, with its Ethereum product featuring a staking component.
21Shares offers “Core” versions of its ETPs with reduced fees of 0.1%. Russell Barlow, CEO of 21Shares, described the launch as a historic step for the UK market and for everyday investors who have been excluded from regulated crypto products for years.
Barlow added that this development begins to level the playing field with Europe and is only the first step toward a more comprehensive and innovative framework.
WisdomTree rolled out Bitcoin and Ethereum ETPs with fees set at 0.15% and 0.35%, respectively. Alexis Marinof of WisdomTree noted that the availability of crypto ETPs on the LSE’s main market demonstrates how far the market has evolved.
Marinof said this gives investors confidence that they can access digital assets through regulated and reliable channels.
Bitwise scheduled the launch of its Bitcoin and Ethereum ETPs for Tuesday, offering a temporary fee of 0.05% for its Core Bitcoin ETP for at least six months. Bradley Duke, Head of Europe at Bitwise, expressed enthusiasm for making Bitwise Bitcoin and Ethereum ETPs available to a much wider group of investors in Europe’s largest investment market.
These new products provide retail investors with access to digital assets through standard brokerage accounts and tax wrappers such as ISAs and SIPPs, eliminating the need for direct cryptocurrency ownership. Previously, only professional investors in the UK had access to these ETPs.
The FCA maintains a cautious approach, prioritizing consumer protection and financial stability. The regulator has ongoing consultations on broader regulations for stablecoins, trading platforms, lending, staking, and custody, with full implementation anticipated by 2026. This development is expected to stimulate growth in the UK’s digital asset market and foster greater mainstream adoption of Bitcoin and other cryptocurrencies.