Bitcoin and Ethereum-based exchange-traded products (ETPs) are poised to enter the London Stock Exchange (LSE) after receiving approval from the Financial Conduct Authority (FCA) of the United Kingdom on May 22.

The WisdomTree Physical Bitcoin ETP and the WisdomTree Physical Ethereum ETP are slated to become among the inaugural crypto ETPs listed in the U.K. and are anticipated to commence trading on May 28, as reported by ETF Stream.

Due to the ban on retail customers trading crypto derivatives enforced in 2021, the ETPs will exclusively target professional and institutional investors. WisdomTree's two ETPs are being listed almost two months after the public announcement by the LSE.

Alexis Marinof, who heads WisdomTree's European operations, expressed that the FCA's endorsement of their crypto ETPs' prospectus will streamline the process for professional investors based in the U.K. to engage in crypto-backed products, which currently necessitate accessing crypto ETPs through foreign exchanges.

In a public declaration on March 25, the LSE unveiled that applications for cryptocurrency ETPs were open until April 8, with successful funds scheduled for listing in May, contingent upon clearance from the nation's financial regulator, the FCA.

To secure FCA approval, the crypto ETPs must be exclusively denominated in Bitcoin or Ether, physically backed, and devoid of leverage. Issuers are also mandated to collaborate with an Anti-Money Laundering licensed custodian in either the United States, the U.K., or the European Union and maintain the underlying assets in cold storage.

The approval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission and their subsequent market traction, which has seen billions flowing into the ETFs, have spurred numerous governments worldwide to facilitate crypto accessibility for investors.

Hong Kong recently greenlit the listing of spot Bitcoin and Ether ETFs. In contrast to U.S.-based spot BTC ETFs, the Hong Kong ETFs boast features such as in-kind transfers and denomination in three fiat currencies. Investors have the ability to promptly purchase and redeem ETF units using Bitcoin or Ether.

Despite the enhanced accessibility, the ETFs fell short of replicating the impact witnessed by U.S.-based Bitcoin ETFs, amassing only $22.5 million on the initial trading day.