LONDON, May 22 (Reuters) - WisdomTree ( WT ) 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 ( WT ) 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 ( WT ) 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 ( WT ) 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.