London Stock Exchange loses key ETF leaders ahead of crypto ETPs launch

As the London Stock Exchange prepares to list its first products traded on the crypto exchange, nearly half of the exchange-traded fund team has reportedly left.

As the London Stock Exchange (LSE) prepares to list its first crypto-related products, two members of its four-person team that oversees exchange-traded funds (ETFs) have left, Bloomberg reported, citing an LSE spokesperson.

Michael Stanley, head of exchange-traded products, and Hetal Patel, head of business development, have left the organization, according to the report, although the exact timing of their exits remains unclear.

The departures come as the LSE prepares to list its first crypto-related products. A senior executive at a potential crypto exchange-traded note (ETN) issuer, speaking on condition of anonymity, expressed concerns to Bloomberg about the impact these departures would have on receiving significant feedback from the LSE regarding technical issues around applications.

The LSE will launch a series of exchange-traded notes (ETNs) linked to physically backed Bitcoin (BTC) and Ethereum (ETH) on May 28, with approvals already received from issuers including WisdomTree, 21Shares and Invesco.

Although Europe has had access to crypto ETNs for some time, previous UK regulations banning retail access to crypto derivatives prevented them from being listed in London. However, a change occurred in March when the Financial Conduct Authority (FCA) updated its guidelines, paving the way for crypto ETPs on the LSE.

While spot Bitcoin and Ethereum ETFs have received regulatory approval in the US and Hong Kong, it is not yet known how high demand for these products will be in the UK.