WisdomTree Approved for Bitcoin and Ethereum ETP Launch on London Stock Exchange

WisdomTree, a New York-based asset manager with over $111 billion in AUM, 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). I received it.

Approved products WisdomTree Physical Bitcoin (BTCW) and WisdomTree Physical Ethereum (ETHW) will begin trading by May 28, providing exclusive access to professional investors. This development is a notable step forward in bridging the gap between traditional financial products and the rapidly growing digital asset space.

Known for its innovative investment products, WisdomTree has been a leader in the cryptocurrency investment space. The approval of Bitcoin Fund (BTCW) as one of the first Bitcoin ETFs in the United States highlights the company’s expertise and leadership in navigating the complexities of the cryptocurrency environment.

The FCA’s approval of these ETPs comes against a backdrop of evolving regulatory dynamics surrounding cryptocurrency investments. In particular, in January 2020, the FCA imposed a ban on cryptocurrency derivatives, including ETPs, for retail investors, citing the need to protect them from the risks and volatility inherent in digital assets. However, the regulatory environment has since evolved and cryptocurrency ETPs are increasingly gaining acceptance across Europe and the United States.

In March, the FCA made a pivotal announcement signaling a change in its stance on cryptocurrency ETPs, indicating that it would not be opposed to financial institutions listing such products for professional investors. This regulatory pivot is consistent with a broader global trend of recognizing the maturity and legitimacy of cryptocurrency markets.

This also follows the approval of a spot Bitcoin ETF in the US and a Bitcoin and Ethereum ETF in Hong Kong earlier this year.

The LSE’s decision to accept applications for Bitcoin and Ethereum products in the second quarter further strengthens these regulatory changes, laying the groundwork for increased institutional participation in the digital asset space.

The listing of WisdomTree’s BTCW and ETHW on the LSE holds promise for professional investors seeking exposure to cryptocurrencies through a regulated and transparent route. Specifically, these ETPs are fully backed by physical holdings of Bitcoin and Ethereum, so each unit represents true ownership of the underlying asset.

Additionally, WisdomTree’s ETPs are market-competitively priced with a management fee of 35 basis points, enhancing their appeal to investors seeking cost-effective exposure to the cryptocurrency markets.

Overall, WisdomTree’s admission to launch a cryptocurrency ETP at the LSE marks a significant milestone in the mainstream adoption of digital assets within the traditional financial framework. As institutional interest in cryptocurrencies continues to grow, regulatory approval and innovative financial products such as BTCW and ETHW are likely to play a pivotal role in shaping the future landscape of digital asset investments.

Also Read: SEC Requests Adjustments to Ethereum ETF Proposal, Sparking Market Speculation