The UK’s Financial Conduct Authority (FCA), the country’s leading financial regulator, has granted approval for physically backed bitcoin and ethereum exchange-traded products (ETPs) to be listed on the London Stock Exchange (LSE) for the first time. “This FCA approval is a significant milestone that could drive greater institutional adoption of cryptocurrencies,” stated Wisdomtree.
First Bitcoin and Ethereum ETP Listings on LSE
The FCA has authorized crypto ETPs from Wisdomtree and 21shares for listing on the LSE. “Wisdomtree is among the first to have its crypto ETP prospectus approved by the FCA,” the company noted, adding:
Its fully physically backed bitcoin and ethereum ETPs, named Wisdomtree Physical Bitcoin and WisdomTree Physical Ethereum, are set to be listed on May 28th, initially available only to professional investors.
The Wisdomtree bitcoin and ethereum ETPs will charge fees of 0.35%, matching similar products on various European exchanges. Alexis Marinof, Wisdomtree’s Head of Europe, emphasized that this approval is a pivotal moment for the crypto sector, potentially boosting institutional interest. All UK-listed crypto funds will be structured as exchange-traded notes (ETNs), a common format in the European crypto market.
Ophelia Snyder, co-founder of 21shares, which will also list its bitcoin and ethereum staking ETPs in the UK with fees of 1.49%, remarked, “London boasts one of the world’s deepest and most liquid capital markets with demonstrated institutional interest in cryptocurrencies.”
Wisdomtree elaborated that the FCA’s approval of their crypto ETPs’ prospectus is a significant step for UK-based professional investors, offering easier access to the asset class. Many investors previously faced challenges due to regulatory restrictions and uncertainty, but FCA approval is expected to remove these barriers and foster greater adoption.
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