WisdomTree’s Bitcoin and Ether ETPs Approved for London Stock Exchange
In a notable advance for cryptocurrency investments in the UK, WisdomTree has been approved by the Financial Conduct Authority (FCA) to list two physically backed cryptocurrency exchange-traded products (ETPs) on the London Stock Exchange (LSE). These products, WisdomTree Physical Bitcoin (BTCW) and WisdomTree Physical Ethereum (ETHW), are set to begin trading by May 28th and are available exclusively to professional investors.
We are thrilled to announce that the Financial Conduct Authority (FCA) has approved the prospectus for our WisdomTree Physical Bitcoin (BTCW) and WisdomTree Physical Ethereum (ETHW) ETPs.
— WisdomTree in Europe (@WisdomTreeEU) May 22, 2024
Breaking New Ground in the UK Market
This approval is a significant milestone in the UK’s financial sector. It provides professional investors with greater access to cryptocurrencies through conventional financial instruments. WisdomTree, a New York-based asset manager with over $111 billion in global assets under management, is known for pioneering investment products. Its Bitcoin Fund (BTCW) was among the first spot Bitcoin ETFs approved in the U.S., highlighting its expertise and leadership in crypto investment.
The WisdomTree Bitcoin Fund (BTCW) makes history in the first wave of Bitcoin ETFs with an anticipated launch tomorrow, January 11. More information is available here: https://t.co/leuba2ToIV
Additionally, the FCA’s approval follows years of cautious regulation of cryptocurrency investments. In January 2020, the FCA banned crypto derivatives, including ETPs, for retail investors to shield them from cryptocurrency’s high risks and volatility. However, the market has evolved, with crypto ETPs gaining acceptance in Europe and the U.S.
FCA’s Regulatory Shift
In March, the FCA announced it would not oppose financial institutions listing ETPs for professional investors. This aligns with global trends that recognise the maturity and legitimacy of the cryptocurrency market. The LSE’s decision to accept applications for Bitcoin and Ether products in the second quarter further confirms this regulatory shift.
What This Means for Investors
The listing of WisdomTree’s BTCW and ETHW on the LSE opens new avenues for professional investors to diversify their portfolios with digital assets. These ETPs are fully backed by physical holdings of their respective cryptocurrencies, ensuring each unit represents actual ownership of Bitcoin or Ether.
Each ETP will have a management fee of 35 basis points, a competitive rate in the market. This launch on the LSE not only broadens investment options for institutional investors but also solidifies WisdomTree’s position in the UK’s growing demand.
Conclusion
The approval of WisdomTree’s Bitcoin (BTCW) and Ethereum (ETHW) exchange-traded products on the London Stock Exchange marks a pivotal moment for the cryptocurrency market in the UK. This development signifies a broader acceptance and integration of digital assets within traditional financial frameworks, offering professional investors new avenues for portfolio diversification.
