The UK’s Financial Conduct Authority (FCA) has given the green light to asset manager WisdomTree to list Bitcoin and Ethereum ETPs on the London Stock Exchange (LSE). This marks a milestone in the UK crypto market.
Details of the Bitcoin and Ethereum ETP Approval and Launch
Following the approval from the FCA to list its Physical Bitcoin (BTCW) and Physical Ethereum (ETHW) ETPs, WisdomTree will commence trading on May 28. However, the ETPs will only be available to professional investors, exclusively.
Individual investors will not be able to access trading. Additionally, the ETPs attract fees of 35 basis points. These rules are in compliance with the FCA’s regulatory framework.
The approval of Physical Bitcoin and Ethereum ETPs signals the expanding reach of digital assets. Just recently, Bitcoin and spot Ethereum ETFs opened for trading in Hong Kong. The debut of the digital assets affected market sentiments positively resulting in a price rebound.
Market watchers are optimistic that the news of the UK’s green light to WisdomTree for these products will signal overall positive sentiments in market performance. Already, the Australian ASX Stock Exchange is on track to list spot Bitcoin ETFs from approved issuers by the end of 2024.
Significance of WisdomTree’s Approval
WisdomTree, a New York-based asset manager oversees more than $111 billion in assets globally. Its Bitcoin Fund (BTCW) was also among the first to receive approval for a spot Bitcoin ETF in the U.S. earlier this year. Since 2019, WisdomTree has consistently offered crypto products on European exchanges.
As per the FCA announcement, it is still open to financial institutions listing ETPs for professional investors. Meanwhile, the LSE confirmed Bitcoin and Ethereum product applications would be accepted in the second quarter.
This approval reverses the FCA’s previous ban on crypto derivatives, including Bitcoin ETP products. This shift aligns the UK with broader European and U.S. trends. However, the restriction on retail investors subsists.
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