WisdomTree Secures Permission To List Crypto ETPs On the London Stock Exchange

WisdomTree received approval from the Financial Conduct Authority (FCA) on May 22 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 Only be Available to Professional Investors

According to a recent press release from WisdomTree, its 100% physically backed Bitcoin and Ethereum ETPs are expected to be listed on Tuesday, May 28, 2024. The products will be offered exclusively to professional investors.

The WisdomTree Physical Bitcoin and WisdomTree Physical Ethereum ETPs have a 0.35% management expense ratio.

Currently, these ETPs are already listed on other major European exchanges, including Deutsche Börse Xetra, the Swiss Stock Exchange SIX, and Euronext exchanges in Paris and Amsterdam.

Alexis Marinof, President of WisdomTree Europe, highlighted the importance of the FCA’s approval, noting that it represents a substantial step forward for the cryptocurrency industry and provides UK-based professional investors with a regulated and secure means of gaining exposure to Bitcoin and Ethereum.

He said,

“While UK-based professional investors have been able to allocate to crypto ETPs via overseas exchanges, they will soon have a more convenient access point. FCA approval in this respect could result in greater institutional adoption of the asset class, as many professional investors have been unable to gain exposure to Bitcoin and other cryptocurrencies due to regulatory limitations and uncertainty – we would expect FCA approval of our crypto ETPs’ prospectus to remove those barriers to entry.”

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

The FCA introduced a ban on crypto derivatives products, including ETPs , on October 6, 2020. This ban was primarily to protect retail investors from the high risks associated with these products.

However, with crypto derivatives being widely available across Europe and following the approvals of US spot exchange-traded funds (ETFs), the FCA adjusted its stance on March 11, 2024, as LSE is also set to launch crypto exchange-trade notes (ETNs) from May 28, which the financial regulator limit to only professional investors in the UK .

The FCA’s decision aligns with broader trends in the financial markets, where cryptocurrency products are increasingly integrated into traditional financial instruments and platforms.

This approval of WisdomTree’s Bitcoin and Ethereum ETPs listing by the UK regulator signals an acknowledgment of the demand for these assets and the need for regulated investment vehicles that can offer security and transparency to investors.