First Reports on Approval of Bitcoin and Ethereum ETFs in the UK Released!
Initial data on Bitcoin and Ethereum-based ETFs in the UK have surfaced around two weeks after their introduction.
ETFs supported by Bitcoin and Ethereum in the UK have experienced minimal trading activity since their debut on the London Stock Exchange (LSE) on May 28. The launch was made possible following the endorsement of the UK Financial Conduct Authority (FCA).
Unlike their American counterparts, these products are restricted to professional investors for trading. However, 21Shares, one of the issuers of these ETFs, sees the potential to revolutionize the market by allowing retail investors access to these products.
21Shares offers a selection of eight cross-listed products in the UK, with four linked to Bitcoin and four to Ethereum. WisdomTree oversees four ETFs, two for Bitcoin (BTC) and two for Ethereum (ETH), while Invesco offers two ETFs backed by Bitcoin. To be listed on the LSE, crypto ETFs must be physically supported, not leveraged, and provide exposure solely to Bitcoin or Ethereum.
Following their introduction, the combined trading volume of these products amounted to just $504,880 as of June 6. WisdomTree accounted for 59% of the trading volume, with 21Shares making up the remaining 41%. In contrast, Invesco’s products have yet to see any trading activity. In comparison, spot Bitcoin ETFs in the US recorded $2.5 billion in trading volume in a single day last Friday.
Among 21Shares’ offerings, Ethereum-based products proved to be more popular, representing 76% of the trading volumes. Within this category, 21Shares’ Ethereum Staking ETFs saw approximately 57% more trading activity compared to the Core Ethereum product without staking returns.
21Shares highlighted that professional investors typically engage in over-the-counter (OTC) trading, conducting transactions outside of official exchanges like the LSE, either directly with a counterparty or through the most liquid exchange platform available.
*This article does not constitute investment advice.
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