The Financial Conduct Authority (FCA), the UK’s primary financial regulator, has approved physically backed Bitcoin and Ethereum exchange-traded products (ETPs) for listing on the London Stock Exchange (LSE) for the first time. “FCA approval in this respect could result in greater institutional adoption of the asset class,” stated WisdomTree.
First Bitcoin and Ethereum ETP Listings on LSE
The FCA has approved crypto ETPs by WisdomTree and 21Shares for listing on the London Stock Exchange (LSE).
WisdomTree is one of the initial issuers to receive FCA approval for its crypto ETP prospectus. Its fully physically backed Bitcoin and Ethereum ETPs, WisdomTree Physical Bitcoin and WisdomTree Physical Ethereum, are anticipated to be listed on the LSE by Tuesday, May 28th, and will be available exclusively to professional investors at the outset.
The two WisdomTree’s physically backed Bitcoin and Ethereum ETPs will have fees of 0.35%, similar to equivalent products listed on several continental European exchanges. Alexis Marinof, Head of Europe at WisdomTree, explained that the FCA’s approval is a crucial development for the crypto industry, potentially leading to increased institutional adoption. All UK-listed crypto funds will be structured as exchange-traded notes (ETNs), a common framework in the European cryptocurrency market.
Ophelia Snyder, co-founder of 21Shares, highlighted that London, known for its deep and liquid capital markets, has a strong institutional interest in cryptocurrencies. 21Shares plans to cross-list its existing Bitcoin and Ethereum staking ETPs in the UK with fees of 1.49%.
WisdomTree emphasized that the FCA’s approval of their crypto ETPs’ prospectus marks a significant advancement for the industry and UK-based professional investors looking to gain exposure to the asset class. Although UK-based professional investors have previously accessed crypto ETPs through overseas exchanges, this new approval will provide a more convenient access point. WisdomTree anticipates that the FCA approval could lead to greater institutional adoption, as it addresses the regulatory limitations and uncertainty that have previously hindered professional investors from gaining exposure to Bitcoin and other cryptocurrencies.
