From Blockchain to the Stock Market: How Cryptocurrencies Entered Regulated Exchanges

For years, “going public” and “cryptocurrencies” seemed like separate worlds: on one side, regulated markets; on the other, internet-native assets traded on non-traditional exchanges. Today, that gap has been bridged through intermediary vehicles — ETFs/ETPs/ETNs — that bring exposure to Bitcoin, Ether, and crypto indexes directly onto exchanges in New York, Toronto, Zurich, London, Hong Kong, and Sydney. It’s not the digital currency itself issuing “shares,” but regulated vehicles that replicate its price under familiar supervisory rules. In the United States, the major shift came with the first spot Bitcoin ETFs (January 2024) and, later, spot Ether ETFs (July 2024), opening the floodgates of capital toward SEC-compliant products.

From pioneering Sweden to Wall Street: key milestones

The stock market story begins in Northern Europe: in 2015, XBT Provider (now CoinShares) listed “Bitcoin Tracker One” on Nasdaq Stockholm, the first ETP tied to BTC on a regulated market. In 2018, in Zurich, Amun/21Shares launched the first “crypto basket” ETP on SIX, paving the way for a wide range of physically collateralized products.

Canada marked another global first in 2021 with the Purpose Bitcoin ETF (BTCC) — the first true spot Bitcoin ETF — approved by Ontario’s regulator and traded on the Toronto Stock Exchange: a model proving that a fund holding BTC in cold storage could work.

In the United States, the breakthrough came when the SEC approved 11 spot Bitcoin ETFs at once on January 10, 2024 (including BlackRock’s IBIT and Grayscale’s conversion of GBTC). A few months later, on July 23, 2024, spot Ether ETFs launched. This certified the entry of the two largest cryptocurrencies by market cap into Cboe, Nasdaq, and NYSE listings through physically collateralized ETFs.

Outside America, Hong Kong launched six spot Bitcoin and Ether ETFs at the end of April 2024, with a notable feature: in-kind creation/redemption, meaning subscriptions and redemptions could be settled directly in BTC/ETH as well as cash. A technical detail, but a meaningful one for efficiency and cost.

In Australia, the door opened in 2024 both on Cboe Australia (Monochrome IBTC, the first spot ETF with direct custody) and, shortly after, on the ASX (VanEck Bitcoin ETF). This signaled that the asset class is now integrated into Asia-Pacific markets as well.

In the United Kingdom, as of May 28, 2024, the London Stock Exchange admits ETNs on Bitcoin and Ether, initially restricted to professional investors; in 2025, the FCA launched consultations on extending access to retail while maintaining safeguards.

ETF, ETP, ETN: what really changes

In the U.S., we speak of ETFs under SEC rules; in Europe, exposure often comes through ETPs/ETNs (collateralized debt instruments) rather than UCITS ETFs, since UCITS rules demand broad diversification and do not allow a single crypto asset as a UCITS fund’s underlying. For investors, the practical result is similar (stock exchange access, institutional custody), but the legal framework differs.

Why listing matters

Bringing Bitcoin/Ether into the stock market via ETFs/ETPs reduces friction (no wallets, keys, or unregulated exchanges), improves tax handling, and integrates the asset class into brokers, advisors, and pension funds. Unsurprisingly, by 2024 major financial institutions were already reporting positions in spot BTC ETFs, signaling growing institutional demand.

On the market side, the iShares Bitcoin Trust (IBIT) became the world’s largest BTC fund in 2024 by assets, overtaking Grayscale: a sign that investors prefer lower-cost, simpler structures to older trusts.

Risks and open issues: custody, fees, and regulation

These vehicles often concentrate custody in a few players; in the U.S., Coinbase Custody has been central for many issuers (with exceptions like Fidelity, which self-custodies, or VanEck using Gemini). Operational concentration is a risk worth watching; by 2025, some issuers began diversifying by including Anchorage Digital.

Fees are falling due to competition (especially in Europe for ETPs and in the U.S. for ETFs), but disparities remain. Also, for U.S. Ether ETFs, staking was not allowed at launch, limiting the ability to capture the native yield of the protocol within the fund.

In Europe, MiCA regulation has now taken effect, creating a single framework for crypto issuers and service providers, with CASP licenses growing; still, the issue of “UCITS ETFs on crypto” remains unresolved due to diversification rules.

Where they are used (beyond finance)

Cryptocurrencies exist not only as “investment assets” on exchanges. Main applications range from cross-border payments and remittances, to micropayments and the creator economy, to asset tokenization (tickets, supply chain credits), decentralized finance, and digital entertainment. Within this scope, regulated formats such as casino live have also adopted crypto solutions for payments or technology testing — without this implying encouragement of use, but simply as one of the areas where brands and platforms are experimenting.