Approval of Bitcoin and Ethereum Garner ETPs on the London Stock Exchange

In a notable advancement for cryptocurrency investing in the UK, WisdomTree has received approval by the Financial Conduct Authority [FCA] to list two physically-backed cryptocurrency exchange-traded products [ETPs] on the London Stock Exchange [LSE]. These products, WisdomTree Physical Bitcoin [BTCW] and physical WisdomTree Ethereum [ETHW] should begin trading on May 28th, available exclusively to professional investors.

Breaking new ground in the UK market

This approval is a significant milestone in the UK financial sector. It provides professional investors with greater access to cryptocurrencies through conventional financial instruments. WisdomTree, a New York-based asset manager with more than $111 billion in global assets under management, is known for pioneering investment products. Your Bitcoin Fund [BTCW] it was one of the first Bitcoin ETFs approved in the US, highlighting its expertise and leadership in the crypto investment domain.

Furthermore, the FCA’s approval follows years of cautious regulation of cryptocurrency investments. In January 2020, the FCA banned crypto derivatives. This includes ETPs, for retail investors to protect them from the high risks and volatility of cryptocurrencies. However, the market has evolved, with crypto ETPs gaining acceptance in Europe and the US

In March, the FCA announced that it would not oppose financial institutions listing ETPs for professional investors. This is in line with global trends that recognize the maturity and legitimacy of the cryptocurrency market. The LSE’s decision to accept orders for Bitcoin and Ether products in the second quarter further confirms this regulatory change.

Also Read: VanEck’s Spot Ether ETF Listed on DTCC Amid SEC Review

What this means for investors

WisdomTree’s listing of BTCW and ETHW on the LSE opens new avenues for professional investors. The goal is to diversify your portfolios 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 Ether.

Each ETP will have an administration fee of 35 basis points. This is a competitive rate in the market. This launch on the LSE not only expands investment options for institutional investors, but also solidifies WisdomTree’s position in the growing UK market.

Also read: SEC says exchanges can approve Spot Ethereum ETFs

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