WisdomTree Launches Bitcoin and Ethereum ETPs on the London Stock Exchange
Asset management company WisdomTree has recently gained approval from the Financial Conduct Authority (FCA) to list its cryptocurrency exchange-traded products (ETPs) on the London Stock Exchange.
These ETPs, named Physical Bitcoin (BTCW) and Physical Ethereum (ETHW), will be exclusively available for professional investors starting from May 28. Each product will have a management fee of 0.35%.
This decision marks a significant turning point, as the FCA had initially banned these types of derivative products in January 2020, citing concerns about volatility and investor protection.
However, in light of the widespread availability of such products in Europe for several years and the recent approvals of Bitcoin spot ETFs in the United States, the FCA has modified its stance while still maintaining the ban for retail investors.
Perspective Internationale et Influence des Marchés
WisdomTree, headquartered in New York, manages over $111 billion worth of assets worldwide. Its WisdomTree Bitcoin fund (BTCW) was one of the first to receive approval to operate a Bitcoin spot ETF in the United States back in January. The firm has also been offering crypto products on European exchanges since 2019.
In March, the FCA announced that it would not oppose requests from financial institutions seeking to list ETPs for professional investors, paving the way for WisdomTree to proceed with this listing.
The LSE has also confirmed that it will accept applications for Bitcoin and Ethereum products in the second quarter, highlighting a trend of gradual integration of cryptocurrencies into established financial infrastructure.
