In a notable advance for cryptocurrency investments in the U.K., WisdomTree has been granted approval 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 28, available exclusively to professional investors.
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 the crypto investment domain.
Additionally, the FCA’s approval follows years of cautious regulation of cryptocurrency investments. In January 2020, the FCA banned crypto derivatives. This includes ETPs, for retail investors to shield them from the high risks and volatility of cryptocurrencies. However, the market has evolved, with crypto ETPs gaining acceptance in Europe and the U.S.
In March, the FCA announced it would not oppose financial institutions listing ETPs for professional investors. This aligns with global trends recognizing 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.
Also Read: VanEck’s Spot Ether ETF Listed on DTCC Amid SEC Review
What this Means for Investors
The listing of WisdomTree’s BTCW and ETHW on the LSE opens new avenues for professional investors. This is to diversify their portfolios with digital assets. These ETPs are fully backed by physical holdings of their respective cryptocurrencies. This further ensures each unit represents actual ownership of Bitcoin or Ether.
Each ETP will have a management fee of 35 basis points. This is 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 market.
Also Read: SEC Informs Exchanges It May Approve Spot Ethereum ETFs