21Shares has noted that the low trading volumes of its bitcoin and ethereum exchange-traded notes (ETNs) on the London Stock Exchange (LSE) are meeting their expectations, according to a spokesperson from the company.
In a recent development, 21Shares introduced four new physically-backed crypto exchange-traded notes (ETNs) 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 suggest that the London-listed crypto ETNs are struggling to attract inflows due to a lack of institutional demand, as mentioned by crypto ETP providers. However, 21Shares disagrees with this assessment. They argue that institutional and professional investors have had access to similar products on exchanges outside of the UK for years.
The restrictions imposed by the Financial Conduct Authority (FCA) limit the trading of crypto ETNs to professional investors only. Retail consumers are not allowed to invest in these products, and the sale of crypto derivatives and ETNs was banned by the FCA in 2021.
Despite the slow start on the LSE, 21Shares remains optimistic about the future trading volumes of their ETNs. They anticipate an increase in trading volume once platforms complete their onboarding process for the newly listed ETPs.
The approval from the FCA for professional investors in the UK is seen as a significant step for the asset class by 21Shares. They believe that opening the market to retail investors in the future will be a game-changer for the industry.
Overall, 21Shares is confident that the market will pick up momentum, especially with the potential for retail investors to participate in the trading of crypto ETNs in the future.