Global X Lists Bitcoin and Ethereum ETPs on the LSE
US-based ETF provider Global X has listed the Global X Bitcoin ETP and the Global X Ethereum ETP on the London Stock Exchange.
The move comes after the UK regulator, the Financial Conduct Authority (FCA) approved the first crypto ETPS from issuers WisdomTree and 21Shares last month. The crypto products are restricted to professional investors only, under FCA regulations.
There has been a flurry of new listings on the LSE despite the crypto products failing to attract inflows due to the lack of institutional demand, as reported by CryptoNews.
In May, 21Shares launched 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 listed a Bitcoin and Ethereum ETN in May. Invesco launched the Invesco Physical Bitcoin ETP listed on the LSE last week carrying a total expense ratio of 0.39%.
Global X Drops Fees to Zero
Global X, an asset management firm owned by Mirae Asset, recently announced a fee waiver on the two products which are already currently listed on SIX Swiss Exchange and Deutsche Börse Xetra. Global X Bitcoin ETP is trading under the ticker “BTCX” and the Global X Ethereum ETP is trading under the ticker “ETHX” on the LSE.
“We are thrilled to deliver on our mission to provide investors with beyond-ordinary solutions and provide the UK market with access to bitcoin and ethereum through secure and regulated exchange-traded product wrappers,” said Rob Oliver, head of business development at Global X ETFs.
“This fee reduction demonstrates our continued commitment to the European market and its investors,” added Oliver.
LSE is Late to the Party
One crypto provider explained that LSE-listed products are slow to gain inflows due to there already being many similar products available in Europe.
21Shares told CryptoNews that the low volumes it has seen for its LSE-listed crypto products are in line with expectations.
“In our case, these [crypto ETNs] are cross-listings of existing products, and professional investors are going to trade on markets with the most liquidity — which as of now is Xetra,” said a 21Shares spokesperson.
