LONDON, May 22 (Reuters) - Britain's financial regulator

has approved WisdomTree's ( WT ) bid to list exchange-traded

products (ETPs) backed by cryptocurrencies bitcoin and ether on

the London Stock Exchange, the asset manager said on Wednesday

ahead of an expected launch this month.

The approval comes 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, 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, head

of Europe at WisdomTree ( WT ).

"FCA approval in this respect could result in greater

institutional adoption of the asset class."

The FCA has warned 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.