Santa Cruz County ballot errors impact more than 1,100 voters
Strike at Boeing was part of a new era of labor activism long in decline at US work places
Google defeats lawsuit over gift card fraud
Delay in Chile mining permits a serious problem, says local head of Freeport
Equatorial Guinea orders crackdown on sex in government offices after videos leaked
US needs to crack down on Chinese chipmaker SMIC, Republican lawmaker says
Malaysia central bank set to manage market volatility, monitoring US election
Book Review: 'The Name of This Band is R.E.M.' is a vivid journey through the rock band's history
Rare letter signed by Founding Fathers expected to fetch $1 million at auction
Jerry Jones says Dak Prescott likely out at least 4 games with IR move because of hamstring injury
LONDON (Reuters) -WisdomTree and 21Shares are to launch exchange-traded products (ETPs) backed by cryptocurrencies on the London Stock Exchange, the firms said on Wednesday after getting the green light from Britain's financial regulator.
The planned listings, set to be the first in the UK, come after Britain's Financial Conduct Authority (FCA) in March approved the launch of what it called "cETNs" - cryptoasset-backed exchange traded notes - for professional investors.
Investors are increasingly buying cryptocurrencies via ETPs, even as regulators warn about the risks.
Bitcoin's price surged after the U.S. Securities and Exchange Commission (SEC) approved bitcoin exchange-traded funds in January, and cryptocurrencies have gained in recent days on expectations that the SEC will approve a similar product for the second-biggest cryptocurrency, ether.
The two WisdomTree products give investors exposure to the underlying cryptocurrencies: one for bitcoin and one for ether. They are expected to be listed on May 28, asset manager WisdomTree said in a statement, adding that it was "amongst the first issuers" to have its crypto ETPs approved by the FCA.
"While UK-based professional investors have been able to allocate to crypto ETPs via overseas exchanges, they will soon have a more convenient access point," said Alexis Marinof, WisdomTree's head of Europe.
"FCA approval in this respect could result in greater institutional adoption of the asset class."
21Shares, which describes itself the largest global issuer of crypto-backed ETPs, said it would list on the London exchange following recent regulatory approval.
"London hosts one of the deepest, most liquid capital markets in the world - where there is proven institutional interest in cryptocurrencies," it said in a statement.
The FCA has stated that cryptocurrencies are highly risky and largely unregulated.
It bans selling them to retail investors, saying the products are "ill-suited for retail consumers due to the harm they pose".
"Those who invest should be prepared to lose all their money," the regulator said in March.
(Reporting by Elizabeth Howcroft; Editing by Tommy Reggiori Wilkes, Mark Potter and Jane Merriman)
