The 28th of May is anticipated to see the launch of several spot Bitcoin ETPs, including CoinShares, ETC Group
The London Stock Exchange has granted WisdomTree authorization from the Financial Conduct Authority to list its physically-backed Bitcoin and Ethereum ETPs. With this authorization, WisdomTree can launch the WisdomTree Physical Bitcoin and WisdomTree Physical Ethereum ETPs in anticipation of removing UK restrictions on May 28.
These ETPs, accessible solely to professional investors, reportedly have one of Europe’s lowest commission structures among institutional-grade cryptocurrency ETPs at a management expense ratio of 0.35%.
Head of Europe at WisdomTree, Alexis Marinof, underscored the significance of this regulatory sanction in facilitating access to digital assets for professional investors based in the United Kingdom. According to Marinof, FCA approval could increase institutional adoption by eliminating regulatory obstacles that previously restricted access to Bitcoin and other cryptocurrencies.
Listed on major European exchanges, including Deutsche Borse Xetra, the Swiss Stock Exchange SIX, and Euronext, WisdomTree’s current offerings consist of eight physically backed crypto ETPs that offer exposure to the spot price of specific currencies as well as diversified crypto baskets.
ETC Group and CoinShares, among other issuers, are preparing to list their cryptocurrency ETPs on the LSE in accordance with FCA regulations. Established ETP issuers are essentially conducting a box-checking exercise in light of recent FCA guidance.
The potential interest of other significant European crypto players, such as VanEck, in conjunction with WisdomTree’s initiative, indicates a growing trend toward institutional-grade and regulated crypto investment products in the UK market. Retail investors are excluded and considered incapable of managing Bitcoin purchases via ETPs.