WisdomTree Receives Approval for Bitcoin And Ethereum ETPs, Set to List on London Stock Exchange
WisdomTree, a global asset manager, has secured approval from the Financial Conduct Authority (FCA), which will enable the listing of its WisdomTree Physical Bitcoin (BTCW) and WisdomTree Physical Ethereum (ETHW) exchange-traded products (ETPs) on the London Stock Exchange (LSE).
This development positions WisdomTree among the first issuers to have their crypto ETP prospectus approved by the FCA.
Key points:
- WisdomTree’s 100% physically backed Bitcoin and Ethereum ETPs are expected to be listed on the LSE as early as Tuesday, May 28th.
- The ETPs will initially be available only to professional investors.
- The crypto ETPs have a competitive management expense ratio (MER) of 0.35%, one of the lowest fee levels for institutional-grade Bitcoin and Ethereum ETPs in Europe.
- FCA approval could lead to greater institutional adoption of cryptocurrencies in the UK.
Alexis Marinof, Head of Europe at WisdomTree, emphasized the importance of this development. Marinof stated that “while UK-based professional investors have previously been able to allocate to crypto ETPs via overseas exchanges, they will soon have a more convenient access point.”
He further noted that FCA approval could result in greater institutional adoption of the asset class, as many professional investors have been unable to gain exposure to Bitcoin and other cryptocurrencies due to regulatory limitations and uncertainty.
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FCA’s Bitcoin and Ethereum ETP approval marks a shift in crypto stance
The FCA’s decision to approve prospectuses from WisdomTree, as well as other firms like 21Shares and Invesco, marks a notable shift in the regulator’s stance on crypto ETPs.
In January 2020, the FCA introduced a ban on crypto derivatives products, including ETPs. However, with such products widely available in Europe for several years and following U.S. spot ETF listing approvals, the regulator has adjusted its position.
The upcoming listing of WisdomTree’s Bitcoin and Ethereum ETPs on the LSE is expected to provide UK-based professional investors with a more accessible and familiar way to gain exposure to cryptocurrencies.
