In a notable development for crypto investing in the UK, WisdomTree receives Financial Conduct Authority approval [FCA] Listing two physically backed cryptocurrency exchange products [ETPs] Listed on the London Stock Exchange [LSE]. These products, WisdomTree Physical Bitcoin [BTCW] and WisdomTree Physical Ethereum [ETHW] Trading, available only to professional investors, is expected to begin by May 28th.
Breaking new horizons in the UK market
This approval marks a significant milestone for the UK financial sector. This will give professional investors greater access to cryptocurrencies through traditional financial products. WisdomTree, a New York-based asset management firm with more than $111 billion in assets under management worldwide, is known for its pioneering investment products. The company's Bitcoin fund is [BTCW] is one of the first spot Bitcoin ETFs approved in the United States, highlighting the company's expertise and leadership in the cryptocurrency investment space.
Additionally, the FCA’s approval comes after years of careful regulation of crypto investments. In January 2020, the FCA banned virtual currency derivatives. This includes ETPs to protect retail investors from the high risks and volatility of cryptocurrencies. However, the market is evolving and crypto ETPs are gaining acceptance in Europe and the US.
In March, the FCA announced that it would not object to financial institutions listing ETPs for professional investors. This is in line with global trends recognizing the maturity and legitimacy of the crypto market. The LSE's decision to accept applications for Bitcoin and Ether products in the second quarter further confirms this regulatory shift.
Related article: VanEck's Spot Ether ETF listed on DTCC amid SEC review
What this means for investors
The listing of WisdomTree's BTCW and ETHW on the LSE opens up new avenues for professional investors. This is to diversify your portfolio with digital assets. These ETPs are fully backed by physical holdings of their respective cryptocurrencies. This further ensures that each unit represents actual ownership of Bitcoin or Ethereum.
Each ETP is subject to a 35 basis point management fee. This is a competitive rate in the market. This entry into the LSE not only expands investment options for institutional investors, but also solidifies WisdomTree's position in the UK's growing market.
Also read: SEC tells exchanges it may approve Spot Ethereum ETF
