In a significant development for the UK’s financial market, New York-based asset manager WisdomTree has received approval from 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) will begin trading on May 28, exclusively for professional investors.
This approval marks a major milestone, enhancing access to cryptocurrency investments through traditional financial channels.
WisdomTree, which oversees over $111 billion in assets globally, is recognized for its innovative investment offerings. The firm’s Bitcoin Fund (BTCW) was one of the first spot Bitcoin ETFs approved in the U.S., showcasing its leadership in the cryptocurrency sector.
The FCA’s approval comes after a period of cautious regulation around cryptocurrency investments.
In January 2020, the FCA prohibited crypto derivatives, including ETPs, for retail investors due to the high risks associated with cryptocurrencies. However, the market’s evolution has led to a broader acceptance of crypto ETPs in Europe and the U.S.
In March, the FCA indicated it would permit financial institutions to list ETPs for professional investors, reflecting a global trend towards recognizing the legitimacy and maturity of the cryptocurrency market.
The LSE’s decision to accept applications for Bitcoin and Ether products in the second quarter of this year underscores this regulatory shift.
The listing of WisdomTree’s BTCW and ETHW on the LSE opens new opportunities for professional investors to diversify their portfolios with digital assets.
These ETPs are fully backed by physical holdings of Bitcoin and Ether, ensuring that each unit represents actual ownership of the underlying cryptocurrency.
With a management fee of 35 basis points, these ETPs offer a competitive rate in the market. This launch not only broadens investment options for institutional investors but also strengthens WisdomTree’s foothold in the expanding UK cryptocurrency market.
