Key Points
- Crypto ETPs have received approval in the UK.
- WisdomTree is the first to start trading on the London Stock Exchange on May 28.
Bloomberg‘s recent reports confirm the approval by the UK’s financial regulator of the first crypto exchange-traded products. This is one step forward in the race of crypto for financial centers.
The UK’s financial regulator approves the first cryptocurrency exchange-traded products, a step toward catching up to other financial centers in digital assets https://t.co/E30KvAejlx
— Bloomberg Crypto (@crypto) May 22, 2024
WisdomTree Inc. said that it received the green light from the Financial Conduct Authority to list a pair of physically-backed crypto ETPs that will track Bitcoin and Ethereum on the London Stock Exchange.
According to the reports from WisdomTree, the products may start trading on May 28.
Among other issuers who have already applied to list their crypto products in the UK are ETC Group, 21Shares, and CoinShares.
An FCA website that displays approvals listed entries from the three companies as of 12 pm on Wednesday. This is the deadline for being included on day one of trading.
WisdomTree’s products will directly hold Bitcoin and Ethereum, and they will only be available to professional investors under rules set by the FCA.
This is a stricter regulation compared to the ones in the US regarding crypto products, where the Bitcoin ETFs approved back in January now oversee a total of $59 billion. This means five times the total for crypto products traded in Europe.
Bloomberg’s Eric Balchunas also announced the approval of these crypto products in the UK, highlighting a retail ban that is still in effect.
Re the news that bitcoin ETFs have been approved to trade on the London Stick exchange, it’s true but few imp details: only physically backed allowed, two wisdomtree ones to start and retail ban still in effect. Good piece on it from ETF Stream: https://t.co/TFLVr2bm2Q pic.twitter.com/W1fJ6SEpNL
— Eric Balchunas (@EricBalchunas) May 22, 2024
ETF Stream also reported the news revealing that the WisdomTree Physical Bitcoin ETP (WBTC) and the WisdomTree Physical Ethereum ETP (WETH) will be among the first set of crypto ETPs to be listed on LSE.
They also highlighted that the products will only be available to professional investors.
The website quoted Alexis Marinof, head of Europe at WisdomTree who said that the FCA approval of the crypto ETP’s prospectus is an important step forward for the industry and UK-based professional investors who seek exposure to crypto.
Crypto ETPs, trading on European stock exchanges for years
Bloomberg also highlighted that ETPs linked to cryptos have traded on other European stock exchanges for years.
The success of Bitcoin ETFs approved by the US SEC back in January propelled Bitcoin to a new record high back in March, paving the way for wider adoption by both retail and institutional investors.
Hong Kong also approved Bitcoin and Ethereum ETFs back in April and the crypto products started trading on April 30.
Bloomberg also said that ETC Group’s application is still in progress, and 21Shares declined to comment on the status of their application. Also, the FCA declined to comment on individual applications, along with CoinShares and Invesco who did not respond.
