“UK Financial Conduct Authority’s Approval Paves the Way: London Stock Exchange Lists Physical Bitcoin and Ethereum ETPs, Gaining a Lead Over the US”
WisdomTree achieves a milestone by gaining approval from the Financial Conduct Authority (FCA) in the United Kingdom to list its cryptocurrency ETP on the London Stock Exchange (LSE). This development will provide professional investors in the UK with a more convenient way to invest in Bitcoin and Ethereum.
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Approval of Bitcoin and Ethereum ETP in the UK
ETP to facilitate institutional adoption
FCA supports crypto ETN, but retail investors are excluded
Listing requirements must be met
Asset management company WisdomTree has obtained approval from the FCA to list its WisdomTree Physical Bitcoin and WisdomTree Physical Ethereum ETP on the LSE (scheduled for May 28th).
Alexis Marinof, Head of WisdomTree Europe, stated, “The approval of our crypto ETP prospectus by the FCA is an important step forward for UK professional investors seeking exposure to this asset class.” This approval provides a more convenient avenue for UK investors who previously had to rely on overseas exchanges for crypto ETP allocation.
What is an ETP? How is it different from an ETF? An ETP is a broad term that covers all financial products traded on an exchange. They typically track the performance of an index, commodity, currency, or other asset class. ETFs (Exchange-Traded Funds), ETNs (Exchange-Traded Notes), and ETCs (Exchange-Traded Commodities) are all types of ETPs.
The FCA’s approval is expected to facilitate greater institutional adoption of cryptocurrencies. Marinof explained that many professional investors in the UK have been unable to access Bitcoin and other cryptocurrencies due to regulatory restrictions and uncertainty. We expect the FCA’s approval of our crypto ETP prospectus to eliminate these entry barriers.
According to WisdomTree’s press release, the management fees for these ETPs are 0.35%, making them one of the lowest-cost institutional-grade Bitcoin and Ethereum ETPs in Europe. This competitive pricing may attract more institutional investors.
The FCA only recently approved the listing of cryptocurrency ETNs on UK exchanges in March. However, these ETNs are limited to professional investors, as retail investors are still prohibited.
To be listed on the LSE, crypto ETNs must meet specific criteria: they must be physically backed, unleveraged, and offer only Bitcoin and Ethereum. WisdomTree currently has eight physically backed crypto ETPs listed on various European exchanges, including Xetra in Germany, SIX in Switzerland, and the Pan-European Exchange in Paris and Amsterdam.
The FCA’s approval of WisdomTree’s Bitcoin and Ethereum ETPs is a key moment for the UK cryptocurrency market. It not only improves accessibility for professional investors but also signifies a broader acceptance and institutional adoption of digital assets in the UK.
At the same time, the UK is taking the lead ahead of the US in approving Ethereum spot ETFs, which is seen as increasing the likelihood of approval in the US.
ETP
FCA
LSE
Ethereum
Bitcoin
UK
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