The United Kingdom’s financial regulator has taken a significant step toward embracing digital assets by approving the first cryptocurrency exchange-traded products (ETPs). WisdomTree Inc., a leading asset manager, received the green light from the Financial Conduct Authority (FCA) to list a pair of physically-backed ETPs tracking Bitcoin and Ether on the London Stock Exchange. These products are expected to start trading as early as May 28, according to a statement released by WisdomTree on Wednesday.
Other Issuers in the Mix
WisdomTree isn’t alone in seeking approval for crypto products in the UK. ETC Group, 21Shares, and CoinShares have also applied to list their own ETPs. The FCA’s website currently displays approvals for WisdomTree, 21Shares, and Invesco Digital Markets Plc, with the deadline for inclusion on the first day of trading being 12 p.m. on Wednesday.
Professional Investors Only
While WisdomTree’s ETPs directly hold Bitcoin and Ether, they are exclusively available to professional investors under the FCA’s rules. This stands in contrast to the US, where a new wave of Bitcoin exchange-traded funds (ETFs) approved in January now oversees a combined $59 billion—nearly five times the total value of crypto vehicles traded in Europe.
Wider Adoption and Global Trends
ETPs linked to cryptocurrencies have been trading on other European stock exchanges for years. The success of products approved by the US Securities and Exchange Commission (SEC) earlier this year significantly boosted Bitcoin’s value, leading to a record high in March. These developments have paved the way for broader adoption by both retail and institutional investors.
Hong Kong has also permitted Bitcoin and Ether ETFs, although investor interest there has been lukewarm.
Remaining Applications and FCA’s Silence
ETC Group’s application remains in progress, while 21Shares has declined to comment on its status. The FCA, however, has not provided specific comments on individual applications. CoinShares and Invesco have yet to respond to requests for comment.
This regulatory milestone signals the UK’s growing acceptance of digital assets, aligning it with other global financial centers.
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