21Shares, WisdomTree, and VanEck Eye UK Listings as FCA Lifts Crypto ETN Ban

The FCA is lifting its crypto ETN ban, allowing firms such as 21Shares and VanEck to explore retail listings on UK exchanges from Oct. 8. | Credit: Mike Kemp / Getty Images.

Key Takeaways

The FCA will allow everyday investors to buy crypto exchange-traded notes starting Wednesday, Oct. 8. Leading asset managers are preparing to list or expand their crypto ETN offerings in London as the new rules take effect. Regulators now view the crypto market as more mature and better understood, with improved custody standards and investor safeguards.

Digital asset managers 21Shares, WisdomTree, and VanEck are reportedly preparing to list new crypto exchange-traded notes (cETNs) in London after Britain’s Financial Conduct Authority (FCA) finally lifted a nearly four-year ban on retail access to the products.

On Wednesday, Oct. 8, ordinary investors will be allowed to buy crypto ETNs listed on recognised exchanges, reversing a prohibition introduced in early 2021.

Retail ETNs Opening October 8

The FCA will offer cETNs to everyday investors from Wednesday, aligning the U.K. with other countries across the EU and the U.S.

For asset managers, the change is set to unlock access to millions of retail investors and billions of pounds in potential inflows that were previously off-limits.

These firms will now be able to list their crypto-linked products under an exchange-traded structure rather than relying solely on institutional demand.

Retail access to cETNs has been banned since 2021 after regulators concluded they were too risky for everyday traders.

However, regulators now note a significant maturing of the market, with increased consumer protections.

FCA Executive Director of Payments and Digital Finance David Geale said:

“Since we restricted retail access to cETNs, the market has evolved, and products have become more mainstream and better understood.

Issuers Ready to Expand

Major global asset managers such as 21Shares and VanEck, which already issue crypto-linked investment products in Europe and the U.S., are now preparing to list their offerings in the U.K.

The Swiss-based 21Shares, one of the first issuers to list physically backed crypto ETNs on the London Stock Exchange (LSE) for professional investors in 2024, said it was “ready to support a responsible expansion” into the retail market.

In partnership with digital wealth management platform Stratiphy, the two firms are set to offer retail investors access to crypto ETNs as soon as the changes come into effect.

Although not confirmed, WisdomTree also seems to be exploring the option of retail cETNs when the ban lifts.

Story Continues

Adria Beso, WisdomTree’s Head of Distribution in Europe, said the firm expected U.K.-listed crypto ETPs “to become the preferred vehicle for investors.”

“WisdomTree is focused on delivering institutional-grade solutions that help UK investors gain safer and smarter access to crypto and meet their financial goals,” Beso added.

Meanwhile, other providers such as VanEck, DWS and Deutsche Digital Assets are also reportedly exploring U.K. listings once the ban is lifted.

Crypto ETN Issuers in the U.K.

Issuer U.K. Activity Current Investor Access 21Shares Launched four physically backed cETNs on the London Stock Exchange (LSE) in May 2024. Will offer retail cETNs from Oct. 8. Offers institutional access. VanEck Planning to launch cETNs in the U.K. once the ban lifts. Will offer retail cETNs from Oct. 8. WisdomTree Listed Bitcoin and Ether cETNs on the LSE alongside 21Shares in May 2024. Exploring option for retail cETNs after Oct. 8. DWS “Actively” monitoring U.K. listing opportunities. Exploring option for retail cETNs after Oct. 8. Deutsche Digital Assets “Currently investigating” bringing its ETPs to the U.K. Exploring option for retail cETNs after Oct. 8.

The post 21Shares, WisdomTree, and VanEck Eye UK Listings as FCA Lifts Crypto ETN Ban appeared first on ccn.com.

View Comments