Amid the potential approval of spot Ethereum ETF (Exchange Traded Fund), asset manager giant WisdomTree has gathered massive attention from the crypto community. On May 22, 2024, WisdomTree received approval from the Financial Conduct Authority (FCA) to list its Bitcoin (BTCW) and Ethereum (ETHW) ETPs on the London Stock Exchange (LSE).
WisdomTree to list ETPs on LSE
The New York-based firm, which manages more than $111 billion in assets globally, announced that its Physical Bitcoin (BTCW) and Physical Ethereum (ETHW) ETPs will begin trading on May 28, 2024. These ETPs have a low management expense ratio of 0.35%, making them some of the cheapest institutional-grade options in Europe.
This approval marks a notable milestone, as WisdomTree is among the first to have its prospectus sanctioned by the UK regulator for such products. The FCA’s nod comes after its March 2024, statement indicating no objections to financial institutions’ requests to list crypto ETPs for professional investors.
This move aligns the UK market more closely with European standards, where similar products have been available since 2019, and follows the trend set by the U.S., where WisdomTree’s Bitcoin Fund (BTCW) was approved for a spot bitcoin ETF earlier this year.
FCA’s stance on crypto investment products
The LSE confirmed its willingness to accept applications for Bitcoin (BTC) and Ether (ETH) products within the second quarter of 2024. This development reflects the FCA’s evolving stance on cryptocurrency investment products. In January 2020, the FCA imposed a ban on crypto derivatives, including ETPs, for retail investors. However, influenced by the broader acceptance of such products in Europe and the recent U.S. approvals, the regulator has adjusted its approach, maintaining the ban solely for retail investors while permitting professional investors to engage.
WisdomTree’s entry into the UK market with these crypto ETPs is a strategic expansion of its already established presence in the European cryptocurrency product sector. The firm has been offering crypto-related investment products on various European exchanges since 2019, catering to the growing institutional demand for digital asset exposure.
This approval by the FCA not only opens new routes for professional investors in the UK but also represents a progressive shift in regulatory attitudes towards cryptocurrency investments, potentially setting the stage for broader acceptance and integration of digital assets within traditional financial markets.
