LUCKNOW (CoinChapter.com) — New York-based asset manager WisdomTree has received approval from the UK’s Financial Conduct Authority (FCA) to list its WisdomTree Physical Bitcoin (BTCW) and WisdomTree Physical Ethereum (ETHW) exchange-traded products (ETPs) on the London Stock Exchange.
The crypto ETPs are expected to begin trading on May 28, making WisdomTree among the first issuers to gain the FCA’s clearance for crypto products targeted at professional investors in the United Kingdom.
Physical Backing, 0.35% Fee Offers Cost-Effective Crypto Ownership
Listing the Bitcoin and Ethereum ETPs on the LSE opens up new portfolio diversification opportunities for professional investors in digital assets. Fully backed by physical Bitcoin and Ether holdings, each ETP unit represents actual cryptocurrency ownership.
With a competitive 0.35% management fee, WisdomTree’s ETPs provide cost-effective exposure.
WisdomTree’s ETPs are among the first crypto products listed in the UK after the FCA’s approval. This follows the LSE’s announcement in March that it was accepting crypto ETP applications until April 8th for listing in May.
To gain approval, the ETPs had to be denominated solely in Bitcoin or ether, physically backed, and non-leveraged. Additionally, issuers must partner with approved crypto custodians holding assets in cold storage.
U.K. Catches Up as U.S., Hong Kong See Crypto ETF Boom
The success of Bitcoin ETFs in the U.S. has prompted other nations to offer crypto ETFs with additional features.
Alexis Marinof, WisdomTree Head of Europe, stated the FCA’s ETP prospectus approval “is a significant step forward”. This will give UK professional investors “a more convenient access point” compared to accessing crypto ETPs on overseas exchanges.
While welcoming the “step in the right direction,” a CryptoUK spokesperson said they would “like to see more crypto-related instruments available to both institutional and retail investors in the UK” to keep pace with the rapidly evolving US market.
The approval follows years of cautious crypto regulation by the FCA. In January 2020, the regulator banned crypto derivatives and ETPs for retail investors due to volatility risks. However, the scenario changed as crypto ETPs gained traction across Europe and the United States. In March, the FCA announced it would allow firms to list crypto ETPs for professional investors to align with global trends.
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