New Data Released from Approved Bitcoin and Ethereum ETFs in the UK
Recently, the UK saw the evaluation of Bitcoin and Ethereum-based ETFs approximately two weeks after their launch. These ETFs, backed by Bitcoin and Ethereum, were introduced on the London Stock Exchange (LSE) on May 28 following approval from the UK Financial Conduct Authority (FCA).
In contrast to their US counterparts, these ETFs are restricted to professional investors for trading. However, 21Shares, one of the issuers of these ETFs, sees the potential for significant impact if these products were made available to retail investors.
In the UK, there are a total of eight cross-listed ETFs offered by 21Shares, with four fueled by Bitcoin and four by Ethereum. Additionally, WisdomTree manages four ETFs, split equally between Bitcoin and Ethereum, while Invesco provides two Bitcoin-backed products. These crypto ETFs listed on the LSE must be physically backed, unleveraged, and provide exposure exclusively to Bitcoin or Ethereum.
Since their launch, the total trading volume of all these products amounted to just $504,880 as of June 6. WisdomTree dominated the transaction volume with 59%, while 21Shares accounted for 41%. On the other hand, Invesco’s products have yet to see any transaction volume. In comparison, spot Bitcoin ETFs in the US witnessed a trading volume of $2.5 billion in a single day last Friday.
Among 21Shares’ offerings, Ethereum-based products performed better, representing 76% of the transaction volume. Notably, the Ethereum Staking ETFs from 21Shares saw about 57% more trading volume 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 formal exchanges like the LSE, either directly with another party or through the most liquid exchange available.
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