Global X has recently listed the Global X Bitcoin ETP and the Global X Ethereum ETP on the London Stock Exchange. This move follows the approval of the first crypto ETPs by the UK regulator, the Financial Conduct Authority (FCA), last month from issuers WisdomTree and 21Shares. These crypto products are only available to professional investors under FCA regulations.
Despite the lack of institutional demand causing crypto products to struggle to attract inflows, there has been a surge in new listings on the LSE. In May, 21Shares introduced four new physically-backed crypto exchange-traded notes (ETNs), including the 21Shares Bitcoin ETN, 21Shares Ethereum Staking ETN, 21Shares Bitcoin Core ETN, and the 21Shares Ethereum Core ETN. WisdomTree also listed a Bitcoin and Ethereum ETN in May. Additionally, Invesco launched the Invesco Physical Bitcoin ETP on the LSE last week with a total expense ratio of 0.39%.
Global X, an asset management firm under Mirae Asset, has decided to waive fees on their newly listed products on the LSE, which are already available on SIX Swiss Exchange and Deutsche Börse Xetra. The Global X Bitcoin ETP is trading as “BTCX” and the Global X Ethereum ETP is trading as “ETHX” on the LSE.
Rob Oliver, head of business development at Global X ETFs, expressed excitement about providing UK investors with access to bitcoin and ethereum through secure and regulated exchange-traded product wrappers. He also emphasized the firm’s commitment to the European market and its investors with the fee reduction.
While the LSE-listed crypto products have been slow to attract inflows, with 21Shares noting lower volumes compared to other markets, the company stated that this was expected for cross-listings of existing products. Professional investors tend to trade where there is the most liquidity, such as Xetra.
