WisdomTree Lists Bitcoin, Ethereum ETPs on LSE

WisdomTree gains FCA approval to list physically Bitcoin & Ethereum ETPs (BTCW, ETHW) on the LSE starting May 28th. Exclusive access for professional investors, 0.35% expense ratio.

On May 22, the Financial Conduct Authority (FCA) granted WisdomTree permission to list its cryptocurrency exchange-traded products (ETPs), WisdomTree Physical Bitcoin (BTCW) and WisdomTree Physical Ethereum (ETHW), on the London Stock Exchange (LSE). 

WisdomTree ETPs will be accessible exclusively to professional investors. 

A recent press release from WisdomTree indicates that its 100% materially backed Bitcoin and Ethereum ETPs are anticipated to be listed on Tuesday, May 28, 2024. Professional investors will be granted exclusive access to the products.

The management expense ratio for WisdomTree Physical Bitcoin and WisdomTree Physical Ethereum ETPs is 0.35%.

These ETPs are also available for trading on the Euronext exchanges in Paris and Amsterdam, Deutsche Borse Xetra, and the Swiss Stock Exchange SIX. 

President of WisdomTree Europe Alexis Marinof emphasized the significance of the FCA’s approval, stating that it provides professional investors in the United Kingdom with a regulated and secure way to gain exposure to Bitcoin and Ethereum. This is a significant step forward for the cryptocurrency industry. 

He declared, 

“Previously, professional investors based in the United Kingdom could allocate to crypto ETPs through foreign exchanges; however, they will soon have access through a more convenient link.” Many professional investors have been unable to gain exposure to Bitcoin and other cryptocurrencies due to regulatory restrictions and uncertainty; we anticipate that FCA approval of the prospectus for our crypto ETPs will eliminate those obstacles, thereby increasing institutional adoption of the asset class. 

WisdomTree ETPs Approval Follows A Shift in FCA’s Ban on Crypto Products

On October 6, 2020, the FCA prohibited crypto derivatives products, including ETPs. This moratorium was imposed primarily to safeguard retail investors from the high risks associated with these products. 

The FCA modified its position on March 11, 2024, in light of the widespread availability of crypto derivatives in Europe and the approvals of spot exchange-traded funds (ETFs) in the United States. Additionally, on May 28, the London Stock Exchange (LSE) is scheduled to introduce crypto exchange-trade notes (ETNs), which the financial regulator restricts to professional investors in the United Kingdom. 

The FCA’s decision is consistent with overarching patterns observed in the financial markets, where traditional financial platforms and instruments progressively incorporate cryptocurrency products. 

The UK regulator’s approval of WisdomTree’s Bitcoin and Ethereum ETPs’ listing indicates that it recognizes the demand for these assets and the necessity of regulated investment vehicles that provide investors with security and transparency.