Crypto
UK Approves First Cryptocurrency Exchange-Traded Products
According to Bloomberg, the Financial Conduct Authority (FCA), the UK’s financial regulator, has approved the first cryptocurrency exchange-traded products (ETPs), marking a milestone in the UK’s approach to digital asset investment.
An ETP is a type of security traded on stock exchanges, similar to individual stocks. ETPs are designed to track the performance of a specific index, commodity, currency, or other benchmark, allowing investors to gain exposure to various asset classes without directly owning the underlying assets. ETPs can include different structures, such as exchange-traded funds (ETFs), exchange-traded notes (ETNs), and exchange-traded commodities (ETCs).
An ETF is a specific type of ETP that pools together various assets, such as stocks, bonds, or commodities, into a single fund. ETFs aim to replicate the performance of a specific index or benchmark and are structured as investment funds. When you invest in an ETF, you own shares of the fund, which, in turn, owns the underlying assets. ETFs are typically regulated under investment company laws, which provide certain protections and requirements for investors. Additionally, ETFs can distribute dividends to investors if the underlying assets generate income.
The main difference between ETPs and ETFs lies in their structure and scope. ETPs is a broad category that includes various types of exchange-traded securities, not limited to funds. They can encompass notes and commodities as well. While ETFs are a subset of ETPs and are specifically structured as investment funds, other types of ETPs, like ETNs, are debt instruments issued by banks. ETFs are regulated under specific investment fund regulations, while other types of ETPs, such as ETNs, may have different regulatory frameworks. Moreover, ETNs carry the credit risk of the issuer as they are debt securities, whereas ETFs do not have this risk since they own the underlying assets directly. Another distinction is that ETFs can distribute dividends to investors, whereas ETNs do not because they do not directly own the underlying assets.
Per Bloomberg’s article, WisdomTree Inc. announced today that it has received FCA approval to list two physically-backed crypto ETPs, which will track Bitcoin and Ether, on the London Stock Exchange. These products are expected to begin trading as early as 28 May 2024.
Several other issuers, including ETC Group, 21Shares, and CoinShares, have also applied to list their crypto products in the UK. As of midday on Wednesday, the FCA’s approval list included entries from WisdomTree, 21Shares, and Invesco Digital Markets Plc, all set to be part of the first batch of trading on the approval date.
Despite this advancement, the FCA has implemented stringent rules surrounding these products. WisdomTree’s Bitcoin and Ether ETPs, although physically-backed, are only available to professional investors. This restriction is stricter compared to the United States, where the approval of spot Bitcoin ETFs in January has led to significant market growth. Bloomberg says that in the US, these ETFs now manage a combined $59 billion, which is nearly five times the total for similar crypto vehicles traded in Europe.
ETPs linked to cryptocurrencies have been trading on other European stock exchanges for years. The approval of such products by the US Securities and Exchange Commission (SEC) earlier this year played a crucial role in propelling Bitcoin to a record high in March and has facilitated broader adoption among retail and institutional investors.
However, not all global markets have seen the same enthusiasm. In Hong Kong, despite the approval of Bitcoin and Ether ETFs, investor response has been lukewarm. This contrast highlights the varying degrees of market maturity and investor interest in different regions.
ETC Group confirmed that its application is still under review, while 21Shares has already secured approval. CoinShares and the FCA declined to comment on their status, and Invesco had no immediate response.
Financially Settled Ether (“FET”) Futures
| Vendor | Front Month | M25 Contract |
|---|---|---|
| Activ Financial / Options Technology | FET/*.CF | FET/25M.CF |
| BarChart | Y9*0 | Y9M5 |
| Bloomberg | FET = FTEA Curncy | FET = FTEA Curncy |
| CQG | FET? | FETM25 |
| DevExperts | /FETM25:XCBF | /FETM25:XCBF |
| DTN IQ | @FET | @FETM25 |
| DTN ProphetX | @FET | @FETM25 |
| Factset | FET.1-USA | FETM25-USA, FETM25-CBF |
| Interactive Data / ICE | F2:FET1C | F2:FETM25 |
| LiveVol | N/A | FETM25 |
| Morningstar | FET0Y | FETM25 |
| PICO | FET/M5 June 2025 | FET/M5 June 2025 |
| Silexx | N/A | FET/M25 |
| Six-Group | FET | FET5M or FETM5 |
| TradeStation | FETM25 | FETM25 |
| Trading Technologies | FET Jun25 | FET Jun25 |
Financially Settled Bitcoin (“FBT”) Futures
| Vendor | Front Month | M25 Contract |
|---|---|---|
| Activ Financial / Options Technology | FBT/*.CF | FBT/25M.CF |
| BarChart | Y7*0 | Y7M5 |
| Bloomberg | FBT = FXBA Curncy | FBT = FXBA Curncy |
| CQG | FBT? | FBTM25 |
| DevExperts | /FBTM25:XCBF | /FBTM25:XCBF |
| DTN IQ | @FBT | @FBTM25 |
| DTN ProphetX | @FBT | @FBTM25 |
| Factset | FBTC.1-USA | FBTCM25-USA, FBTCM25-CBF |
| Interactive Data / ICE | F2:FBT1C | F2:FBTM25 |
| LiveVol | N/A | FBTM25 |
| Morningstar | FBT0Y | FBTM25 |
| PICO | FBT/M5 June 2025 | FBT/M5 June 2025 |
| Silexx | N/A | FBT/M25 |
| Six-Group | FBT | FBT5M or FBT5M |
| TradeStation | FBTM25 | FBTM25 |
| Trading Technologies | FBT Jun25 | FBT Jun25 |
Detroit man arrested following manhunt for double murder in Tennessee
George Kittle used bottle of tequila to deal with devastating Achilles injury
Parents fear closing of Good Street Learning Center as leaders push to stay open
College football player transferred from Miami to Indiana before national championship
When will the big nor’easters return? Boston in midst of second-longest streak without hefty snowfalls. – The Boston Globe
Florida High School Football Rankings: Top 25 teams – Oct. 21
Cleary's 21 help Le Moyne down Central Connecticut State 69-64 in OT
How old is Bo Nix? What to know about Oregon quarterback ahead of 2024 NFL Draft
99th annual Pony Swim held in Virginia
Video: ‘It Didn’t Have to Happen This Way:’ U.Va. Faculty Call for Review of Police Response to Protests
San Antonio ends its abortion travel fund after new state law, legal action
UN top court set to open Myanmar Rohingya genocide case
Arson engulfs Mississippi synagogue, a congregation once bombed by Ku Klux Klan
Federal judge blocks Trump administration from enforcing mail-in voting rules in executive order
Four killed, 20 injured in overnight Russian strikes across Ukraine
-
Detroit, MI1 week ago2 hospitalized after shooting on Lodge Freeway in Detroit
-
Technology6 days agoPower bank feature creep is out of control
-
Dallas, TX4 days agoAnti-ICE protest outside Dallas City Hall follows deadly shooting in Minneapolis
-
Delaware3 days agoMERR responds to dead humpback whale washed up near Bethany Beach
-
Dallas, TX1 week agoDefensive coordinator candidates who could improve Cowboys’ brutal secondary in 2026
-
Iowa6 days agoPat McAfee praises Audi Crooks, plays hype song for Iowa State star
-
Montana2 days agoService door of Crans-Montana bar where 40 died in fire was locked from inside, owner says
-
Health1 week agoViral New Year reset routine is helping people adopt healthier habits