In a groundbreaking development for the cryptocurrency industry, the Financial Conduct Authority (FCA), the financial regulator of the United Kingdom, has given its approval for the first-ever cryptocurrency exchange-traded notes (ETNs) for Bitcoin and Ethereum.
21Shares, the largest issuer of crypto exchange-traded products (ETPs), has announced the launch of four new ETNs backed by physical assets. These offerings include the 21Shares Bitcoin ETN, 21Shares Ethereum Staking ETN, 21Shares Bitcoin Core ETN, and 21Shares Ethereum Core ETN.
“This marks 21Shares’ official entry into the UK market,” stated the company. The listings are a response to the new regulatory environment in the UK, as the FCA recently announced that professional investors would have access to exchange-traded notes backed by Bitcoin and Ethereum.
WisdomTree Inc, an asset manager, has also received approval from the regulator to list hard-backed crypto ETPs that track Bitcoin and Ethereum on the London Stock Exchange. These products, known as WisdomTree Physical Bitcoin (BTCW) and WisdomTree Physical Ethereum (ETHW) ETPs, have a Management Expense Ratio (MER) of 0.35%, one of the lowest fee levels for institutional-grade Bitcoin and Ethereum ETPs that are fully collateralized by the underlying assets.
It is important to note that on May 23, 2024, the Securities and Exchange Commission (SEC) in the United States officially approved Ethereum exchange-traded funds, marking a new era for cryptoassets.
Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.
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