21Shares Rolls Out Four Crypto ETNs on London Stock Exchange

As a researcher with a background in finance and experience in following the cryptocurrency market, I’m excited about 21Shares’ entry into the UK market with their newly launched physically backed Bitcoin and Ethereum exchange-traded notes (ETNs). The regulatory change allowing professional investors access to these products on the London Stock Exchange is a significant development, and it’s not surprising that issuers like 21Shares are quick to take advantage of this new opportunity.

Twenty-One Shares announced the debut of four cryptocurrency exchange-traded notes (ETNs), which are backed by physical assets, on the London Stock Exchange (LSE). This move signifies their entrance into the United Kingdom market. The ETNs are specifically tailored for experienced investors in the region, as stated in a press statement.

In light of the UK’s latest regulatory update, the FCA permitting professional investors to trade Bitcoin and Ethereum-backed exchange-traded notes, market demand has spurred issuers such as 21Shares to introduce these financial instruments. Consequently, we will soon see their launch.

Users Can Now Purchase Crypto ETNs in Both GBP and USD

Last week, the UK financial regulatory body gave its approval for the Bitcoin and Ethereum Exchange-Traded Notes (ETNs). Consequently, the issuers can now provide their clients with these investment products on a regulated exchange. These ETNs have recently become available for trading on the London Stock Exchange.

Under FCA regulations, those financial instruments, including the 21Shares Bitcoin ETN and 21Shares Ethereum Staking ETN, are exclusively designed for professional investors. In contrast, American markets provide retail traders with access to these securities. The aforementioned products will be traded under ticker symbols ABTC LN and AETH LN on the exchange.

Investors will have the option to purchase these ETNs in either British pounds (GBP) or US dollars (USD), providing flexibility in their investment choices. The company’s introduction of these products into the UK market signifies an important step forward in its global expansion strategy. 21Shares aims to provide users worldwide with the ability to trade crypto-related assets on a regulated, transparent, and secure platform.

As a market analyst, I can tell you that, according to Ophelia Snyder, co-founder of 21Shares, the UK market stands out as one of the most profound and well-supplied capital markets globally.

As a crypto investor, I can’t help but be excited about the UK’s reputation as a deep and liquid capital market. With increasing institutional interest in cryptocurrencies, it feels natural that London Stock Exchange would become a home for responsible and well-constructed funds granting us access to these dynamic markets.

UK Could Become Home to Crypto ETNs in Three Years

Alex Pollak, the UK chief of 21Shares, shared with Yahoo Finance that the FCA’s approval for the introduction of new crypto products might position the UK as the European leader in crypto markets.

According to Pollak, the addition of Bitcoin and Ethereum exchange-traded notes (ETNs) on the London Stock Exchange is a promising sign indicating advancement towards cryptocurrency acceptance in the UK market. Furthermore, he anticipates significant expansion within the next three years if the Financial Conduct Authority (FCA) maintains its supportive stance towards the crypto industry.

“In my opinion, the announcement that these products can be traded on the London Stock Exchange signifies advancement, and I believe that by the end of the next three years, the United Kingdom will host Europe’s most significant crypto exchange-traded fund market.”

As an analyst, I’d rephrase it this way: He pointed out that a significant development would be the removal of restrictions on individual investors, thereby expanding market access to a larger pool of participants.

Read More

2024-05-28 14:37