UK Investors Gain Access to Listed Crypto Exposure via London Stock Exchange

Retail crypto ETPs have been listed on the London Stock Exchange, allowing UK investors to access crypto exposure. Asset managers such as WisdomTree, 21Shares, Bitwise, and BlackRock are offering ETPs with exposure to Bitcoin and Ethereum. Retail investors can access these products through their brokerage platforms. The listing of retail crypto ETPs aims to attract investors with reduced fees.

The London Stock Exchange (LSE) has seen a significant development with the listing of retail crypto exchange-traded products (ETPs), allowing UK investors to gain exposure to cryptocurrencies. The Financial Conduct Authority (FCA) lifted its ban on retail access to crypto exchange-traded notes (ETNs) on October 8, paving the way for major asset managers such as WisdomTree, 21Shares, Bitwise, and BlackRock to introduce their crypto ETPs to the UK market.

BlackRock's iShares Bitcoin ETP, listed on the LSE, offers UK retail investors exposure to Bitcoin with a total expense ratio (TER) of 15 basis points (bps). The ETP is physically backed by Bitcoin and custodied via Coinbase, ensuring robust security and regulatory oversight. The net TER will be 15bps per annum until December 31, 2025, after which it will increase to 25bps per annum, according to Portfolio Adviser.

21Shares has also made four of its flagship crypto ETPs available to UK retail investors for the first time. These include the 1Shares Bitcoin ETP, 21Shares Core Bitcoin ETP, 21Shares Ethereum Staking ETP, and 21Shares EthereumCore Staking ETP. The products are available with a 0.10% fee. Russell Barlow, CEO of 21Shares, commented on the development, stating that it represents a significant step for the UK market and everyday investors who have been excluded from regulated crypto products, according to Portfolio Adviser.

Bitwise has launched four crypto ETPs for retail investors on the LSE, offering exposure to Bitcoin and Ethereum. The products include the Bitwise Core Bitcoin ETP, Bitwise Physical Bitcoin ETP, Bitwise Ethereum Staking ETP, and Bitwise Physical Ethereum ETP. The TERs have been reduced to 0.05% from 0.20% effective as of today, for six months, as reported by Portfolio Adviser.

WisdomTree received FCA approval to make its UK-listed crypto ETPs available to UK retail investors last week. The products have fees of 0.15% for Bitcoin and 0.35% for Ethereum, following its earlier institutional offering in the UK, according to CoinSpeaker.

The listing of retail crypto ETPs aims to attract investors with reduced fees, making it easier for them to gain exposure to cryptocurrencies. Retail investors can now access these products through UK-regulated brokers and investment platforms, such as standard brokerage accounts and tax-efficient wrappers like ISAs and SIPPs, as noted by CoinSpeaker.

The UK's regulatory framework is now more aligned with markets such as the U.S., Canada, Hong Kong, and the EU, but the prohibition on retail access to broader crypto derivatives remains in effect, a point also highlighted by CoinSpeaker.