21Shares Affirms Low Trading Volumes on LSE Meeting Expectations
21Shares, the firm behind bitcoin and ethereum exchange-traded notes (ETNs) listed on the London Stock Exchange (LSE), has noted that the low trading volumes are in line with their anticipated levels, according to a spokesperson from the company.
In a recent development, 21Shares introduced four new physically-backed crypto ETNs on the LSE in May. These include the 21Shares Bitcoin ETN, 21Shares Ethereum Staking ETN, 21Shares Bitcoin Core ETN, and the 21Shares Ethereum Core ETN.
Reports from CryptoNews have indicated that the London-listed crypto ETNs are struggling to attract inflows, primarily due to the absence of institutional demand, as highlighted by crypto ETP providers.
However, 21Shares has a different perspective on the situation. The spokesperson mentioned that the low trading volumes on the LSE are not due to a lack of interest from institutional or professional investors. Instead, they believe that these investors have already had access to similar products on exchanges outside the UK for several years.
The FCA regulations restrict the crypto ETNs to professional investors only, barring retail consumers from investing in these products and imposing a ban on the sale of crypto derivatives and ETNs since 2021.
Despite the slow start, 21Shares remains optimistic about the future trading volume once the platforms complete their onboarding process for the newly listed ETPs. They see the FCA approval for professional investors in the UK as a significant step for the asset class and look forward to the market opening up for retail investors in the future, which they believe will be a game-changing moment for the industry.
