Global X has recently introduced Bitcoin and Ethereum Exchange Traded Products (ETPs) on the London Stock Exchange (LSE). This move by the US-based ETF provider follows the approval of similar crypto ETPs by the UK regulator, the Financial Conduct Authority (FCA), for issuers WisdomTree and 21Shares in the previous month. The availability of these crypto products is limited to professional investors in accordance with FCA regulations.
Despite the surge in new listings on the LSE, these crypto products have not attracted significant inflows due to the lack of institutional demand, as reported by CryptoNews. In May, 21Shares unveiled four new physically-backed crypto exchange-traded notes (ETNs), including the 21Shares Bitcoin ETN, 21Shares Ethereum Staking ETN, 21Shares Bitcoin Core ETN, and 21Shares Ethereum Core ETN. Similarly, WisdomTree listed a Bitcoin and Ethereum ETN in May, while Invesco debuted the Invesco Physical Bitcoin ETP on the LSE last week with a total expense ratio of 0.39%.
Global X, a Mirae Asset-owned asset management firm, has chosen to waive fees on its Bitcoin and Ethereum ETPs that are already listed on SIX Swiss Exchange and Deutsche Börse Xetra. The Global X Bitcoin ETP trades under the ticker “BTCX,” while the Global X Ethereum ETP trades under the ticker “ETHX” on the LSE.
Rob Oliver, the head of business development at Global X ETFs, expressed excitement about providing UK investors with secure access to bitcoin and ethereum through regulated exchange-traded products. He highlighted the fee reduction as a testament to the company’s commitment to the European market and its investors.
Despite the recent listings on the LSE, one crypto provider noted that these products have been slow to attract inflows due to the saturation of similar products in Europe. 21Shares mentioned that the low trading volumes of its LSE-listed crypto products were expected, as professional investors prefer trading on markets with higher liquidity, such as Xetra.
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