Asset management company WisdomTree (WT) received approval from the Financial Conduct Authority (FCA) to list exchange-traded products (ETPs) on the London Stock Exchange (LSE). This makes WisdomTree one of the first applicants to have its prospectus approved by the UK regulator.
Bitcoin and Ethereum ETPs to Start Trading on May 28
WisdomTree’s approved ETPs, Physical Bitcoin (BTCW) and Physical Ethereum (ETHW), will start trading on May 28 and will be available only to professional investors. A fund management fee of 35 basis points will be applied to the ETFs.
New York-based WisdomTree, which manages over $111 billion globally, has been offering cryptocurrency products on European exchanges since 2019. In January, WisdomTree’s Bitcoin Fund (BTCW) became one of the first companies to receive approval to operate a spot Bitcoin ETF in the US. The company’s entry into the UK market aligns with the FCA’s recent policy changes, marking a significant step.
In March, the FCA announced it would not oppose requests from financial institutions seeking to list ETPs for professional investors. This marked a significant shift from the previous stance, which included a ban on crypto derivative products, including ETPs, implemented in January 2020. The LSE later confirmed it would accept applications for Bitcoin (BTC) and Ethereum (ETH) investment products in the second quarter, paving the way for WisdomTree’s offerings.
Change in FCA’s Stance
The change in the FCA’s stance came after observing similar products available in Europe for several years and the approval of spot Bitcoin ETFs in the US. While the regulator eased restrictions for professional investors, it maintained the ban on these products for individual investors, reflecting a cautious approach to broader market risk.
WisdomTree’s Physical Bitcoin and Physical Ethereum ETPs will provide professional investors with regulated, institutional-level access to cryptocurrency investments on the LSE. Experts view the 35 basis point fund management fee as relatively competitive, likely aiming to attract institutional interest and offer a cost-effective way to invest in BTC and ETH.
The FCA’s decision to allow these ETPs reflects increasing acceptance and regulatory adaptation to the evolving cryptocurrency market. By enabling professional investors to participate in crypto ETPs, the FCA acknowledges the growing demand for diversified investment products while continuing to protect individual investors from the potential risks associated with high volatility and market manipulation.
