Key Points
- WisdomTree has obtained FCA approval to list Bitcoin and Ethereum ETPs on the London Stock Exchange.
- This move is expected to increase institutional adoption of cryptocurrencies by removing investment barriers.
WisdomTree, a renowned asset manager, has attained authorization from the UK’s Financial Conduct Authority (FCA) to list its Physical Bitcoin and Physical Ethereum exchange-traded products (ETPs) on the London Stock Exchange.
First Movers in Crypto ETPs
This makes WisdomTree one of the initial issuers to have its cryptocurrency ETP prospectus approved by the FCA. The listing date is scheduled for Tuesday, May 28.
Alexis Marinof, WisdomTree Head of Europe, stated that the FCA approval would provide a more convenient access point for UK-based professional investors seeking exposure to cryptocurrencies. Previously, they could only allocate to crypto ETPs via overseas exchanges.
Removing Investment Barriers
Marinof further commented that the FCA approval has the potential to significantly boost institutional adoption of cryptocurrencies. Many UK-based professional investors have faced barriers due to regulatory limitations and uncertainty.
In a press release, WisdomTree announced that the ETPs will have a management expense ratio of 0.35%. They stated that this represents one of the lowest fee levels for institutional-grade Bitcoin and Ethereum ETPs in Europe.
This news follows the FCA’s approval for cryptocurrency exchange-traded note (ETN) listings on UK exchanges in March. However, crypto ETNs in the UK will only be accessible to professional investors, as the ban on retail access remains in place.
To be listed on the London Stock Exchange, crypto ETNs must be physically backed, non-leveraged, and offer exposure solely to Bitcoin and Ethereum. WisdomTree currently offers eight physically-backed crypto ETPs that provide spot price exposure for Bitcoin and Ethereum. These ETPs are listed on various exchanges including the Deutsche Börse Xetra, the Swiss Stock Exchange (SIX), and Euronext exchanges in Paris and Amsterdam.
A spokesperson for CryptoUK expressed satisfaction with the FCA’s approval of applications to list physically-backed Bitcoin and Ethereum ETPs on the London Stock Exchange. They stated that this move is a step in the right direction for the UK, its equity markets, and the government’s aspiration to establish Britain as a global crypto-asset hub. However, they also expressed the desire for more crypto-related instruments to be available to both institutional and retail investors in the UK.
