By
Svetlana Soroka
June 14th, 2024
According to a prospective crypto ETP issuer, the recent departures have presented challenges in obtaining clear feedback from LSE on technical matters related to their applications.
London Stock Exchange Group Plc (LSE) is making major internal changes within its exchange-traded funds (ETFs) team just as it gears up to launch its first crypto-linked products.
According to a recent report by Bloomberg, Michael Stanley, who served as LSE’s head of exchange-traded products, and Hetal Patel, the business development head, have both exited from their roles. However, the exact timing of their departures remains undisclosed.
In response to the vacancies left by Stanley and Patel, LSE is actively seeking a new senior product manager for ETFs, as indicated by a recent LinkedIn job posting. In a social media announcement, Patel, who worked for the stock exchange for 12 years, disclosed her decision to depart from LSE. She stated:
“After nearly 12 wonderful years, I have decided to leave LSEG for a new and exciting career opportunity, starting towards the end of July.”
It is interesting to note that this restructuring comes amid preparations for the debut of a series of Bitcoin and Ethereum-linked exchange-traded notes (ETNs) on May 28. Approved issuers for these crypto ETNs include WisdomTree, 21Shares, and Invesco.
According to a prospective crypto ETP issuer, the recent departures have presented challenges in obtaining clear feedback from LSE on technical matters related to their applications.
Crypto ETPs in the UK
The move to list crypto ETPs in London comes amid a competitive global environment. In the United States, Bitcoin products received regulatory approval from the Securities and Exchange Commission (SEC) in January. They have cumulatively accumulated over $60 billion, surpassing the size of the entire European market. Moreover, the agency is paving the way for the first US Ethereum spot ETFs, marking further expansion in the crypto investment space.
Meanwhile, Hong Kong also approved Bitcoin and Ether ETFs in April that have encountered lukewarm demand from investors. This highlights varying market dynamics across regions.
However, regulatory restrictions in the UK, particularly a ban on retail access to crypto derivatives, had previously restricted ETF listings in London until the Financial Conduct Authority (FCA) updated its guidance in March. Despite this update, these ETPs will only be available to professional and institutional investors.
An LSE spokesperson addressed the regulatory landscape and emphasized the collaborative effort between the FCA and LSE in reviewing crypto ETN applications. The process involves the FCA approving prospectuses for these products before they can be listed on the exchange. They expressed optimism about the forthcoming market expansion, and told Bloomberg:
“We are excited by the growth opportunities for our new market for crypto ETNs.”
According to the latest data, the LSE currently hosts around 1,200 ETFs, underscoring its status as a key player in the global ETF market.