Exchange-traded products (ETPs) for Bitcoin and Etherium that are physically backed have received approval from the Financial Conduct Authority (FCA), the leading financial regulator in the UK, to list for the first time on the London Stock Exchange. According to Wisdomtree, “FCA approval in this regard could result in greater institutional adoption of the asset class.”
First-ever LSE listings for Bitcoin and Ethereum ETPs
Wisdomtree and 21shares’ cryptocurrency exchange-traded products (ETPs) have been given the go-ahead by the UK Financial Conduct Authority (FCA) to list on the London Stock Exchange (LSE).
The business stressed that Wisdomtree was one of the first issuers to have the FCA approve its prospectus for cryptocurrency ETPs.
Wisdomtree Physical Bitcoin and WisdomTree Physical Ethereum, its 100% physically backed bitcoin and ethereum ETPs, are anticipated to list on the LSE as soon as possible on Tuesday, May 28. These ETPs will only be accessible to seasoned investors at the time of launch.
The costs for the two physically backed Ethereum and Bitcoin ETPs from Wisdomtree will be 0.35%, the same as those of comparable instruments offered on many exchanges in continental Europe. The FCA’s clearance, according to Alexis Marinof, Head of Europe at Wisdomtree, is a significant breakthrough for the cryptocurrency sector and may result in more institutional use. Exchange-traded notes (ETNs), a structure common to the European cryptocurrency sector, will be used to create all of the UK-listed cryptocurrency funds.
Co-founder of 21shares Ophelia Snyder stated: “London hosts one of the deepest, most liquid capital markets in the world—where there is proven institutional interest in cryptocurrencies.” 21shares will cross-list its current bitcoin and ethereum staking ETPs in the UK at fees of 1.49%.
“The industry and professional investors in the UK who are looking to gain exposure to the asset class will benefit greatly from the FCA’s approval of our crypto ETPs’ prospectus. Professional investors in the UK had previously been able to allocation to cryptocurrency ETPs through foreign exchanges, but Wisdomtree explained that they will soon have a more accessible entry point:
In this sense, FCA approval may lead to increased institutional adoption of the asset class. Since regulatory uncertainty and restrictions have prevented many professional investors from investing in bitcoin and other cryptocurrencies, we anticipate that FCA approval of our crypto ETPs’ prospectus will eliminate these entry barriers.