UK Retail Investors Gain Access to Bitcoin and Ethereum ETPs
UK retail investors can now buy Bitcoin and Ethereum through exchange-traded products (ETPs). This follows a regulatory change allowing crypto ETPs on the London Stock Exchange. 21Shares, Bitwise, and WisdomTree have listed their crypto ETPs, making them available to everyday investors for the first time.
The Financial Conduct Authority (FCA) lifted its four-year ban on retail crypto exchange-traded notes just 12 days ago. This move expands crypto access across the UK. These ETPs let retail investors buy crypto using regulated channels without managing digital wallets directly.
New Crypto ETPs and Fee Structures
- 21Shares launched two physically backed ETPs for Bitcoin and Ethereum on Monday.
- The Ethereum ETP includes staking features and reduced fees of 0.1% on select products.
- CEO Russell Barlow said, “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 listed Bitcoin and Ethereum ETPs with fees of 0.15% and 0.35%, matching its earlier institutional offerings.
- Bitwise lowered its Core Bitcoin ETP fee to 0.05% for six months.
- BlackRock also listed its iShares Bitcoin ETP, signaling growing acceptance of digital assets by traditional investors.
Regulatory Framework and Market Outlook
The FCA now allows retail investors to buy crypto ETPs through regular brokerage accounts, ISAs, and SIPPs. However, broader crypto derivatives remain restricted to protect investors. The UK aims to become a global crypto hub while maintaining financial stability.
New regulations for stablecoins, lending, staking, custody, and crypto trading are expected by 2026. Meanwhile, HMRC has sent 65,000 warning letters to investors suspected of underreporting or avoiding crypto taxes, more than double last year’s number.
This update enables UK investors to access Bitcoin and Ethereum safely via regulated platforms. Lower fees and wider availability may encourage more people to enter the crypto market with confidence and protection.
