UK retail investors can now purchase Bitcoin and Ethereum through exchange-traded products (ETPs) following a significant regulatory change. Leading providers 21Shares, Bitwise, and WisdomTree have successfully listed their cryptocurrency ETPs on the London Stock Exchange, making them accessible to everyday investors for the first time.
This development occurs just 12 days after the Financial Conduct Authority (FCA) lifted its four-year ban on crypto exchange-traded notes for retail investors, broadening access across the country. Beyond increased availability, these ETPs offer retail users a convenient way to invest in cryptocurrencies through familiar, regulated financial channels, eliminating the need for direct management of digital wallets.
New ETP Offerings and Features
21Shares launched two physically backed ETPs for both Bitcoin and Ethereum on Monday. These offerings include Ethereum staking capabilities and feature reduced fees, with select products priced as low as 0.1%. Russell Barlow, CEO of 21Shares, commented on the launch, stating, “Today’s launch represents a landmark step for the UK market and for everyday investors who, for years, have been excluded from regulated crypto products.”
WisdomTree also entered the market, listing its Bitcoin and Ethereum ETPs with fees of 0.15% and 0.35%, respectively, aligning with its previous offerings for institutional investors. Bitwise has joined as well, reducing the fee for its Core Bitcoin ETP to 0.05% for an initial six-month period. The presence of BlackRock's iShares Bitcoin ETP, which also listed recently, signifies a growing acceptance of Bitcoin and other digital assets among traditional investors.
Phased Regulation and Market Growth
The FCA's updated guidance now permits retail investors to acquire crypto ETPs using standard brokerage accounts, Individual Savings Accounts (ISAs), and Self-Invested Personal Pensions (SIPPs). However, access to broader crypto derivatives remains restricted, a measure intended to protect investors. The UK government aims to establish itself as a global cryptocurrency hub while maintaining financial stability.
Furthermore, the UK is actively developing new regulations for stablecoins, lending, staking, custody services, and cryptocurrency trading, with these expected to be implemented by 2026. In parallel, the HMRC has issued approximately 65,000 warning letters to investors suspected of underreporting or evading cryptocurrency taxes, a figure more than double that of the previous year.
This latest regulatory update enables UK investors to access Bitcoin and Ethereum securely through regulated platforms. With the introduction of lower fees and enhanced availability, a wider range of individuals can confidently participate in the crypto market while benefiting from regulatory protections.