FCA approves listing of Bitcoin and Ethereum physical ETPs on London Stock Exchange

This site (120btC.coM): WisdomTree has reached a major milestone, receiving approval from the UK Financial Conduct Authority (FCA) to list its cryptocurrency ETP on the London Stock Exchange ( LSE) listed. This development will provide professional investors in the UK with easier access to Bitcoin and Ethereum investments.

UK approves Bitcoin and Ethereum ETP

Asset management firm WisdomTree has received FCA approval to list the WisdomTree Physical Bitcoin and WisdomTree Physical Ethereum ETP on the LSE (scheduled for May 28) .

Alexis Marinof, Head of Europe at WisdomTree, said: “The FCA approval of our crypto ETP prospectus is an important step forward for UK professional investors seeking exposure to this asset class.” The approval provides an easier path for UK investors who previously had to rely on overseas exchanges for crypto ETP allocations.

What is ETP? How is it different from ETFs? ETP is a broad term that covers all financial products traded on exchanges. They typically track the performance of an index, commodity, currency or other asset class. ETFs (exchange-traded funds), ETNs (exchange-traded notes), and ETCs (exchange-traded commodities) are all types of ETPs.

ETP will promote institutional adoption

The FCA’s approval is expected to promote greater institutional adoption of cryptocurrencies. Marinof explained that many professional investors in the UK are unable to access Bitcoin and other cryptocurrencies due to regulatory restrictions and uncertainty. We expect the FCA’s approval of our crypto ETP prospectus to remove these barriers to entry.

According to WisdomTree’s press release, these ETPs have an administrative fee of 0.35%, one of the lowest fees among European institutional-grade Bitcoin and Ethereum ETPs. This competitive pricing may attract more institutional investors.

FCA supports crypto ETNs, but retail investors are not allowed to participate

The FCA just approved cryptocurrency ETNs to be listed on British exchanges in March. However, these ETNs are limited to professional investors, as retail investors are still prohibited.

Listing subject to specific requirements

To be listed on the LSE, crypto ETNs must meet specific criteria: they must be physically backed, unlevered, and only available in Bitcoin and Ethereum. WisdomTree currently lists eight physically-backed crypto ETPs on various European exchanges including Deutsche Börse Xetra, Swiss Exchange (SIX) and Euronext in Paris and Amsterdam.

The FCA’s approval of WisdomTree’s Bitcoin and Ethereum ETP is a pivotal moment for the UK cryptocurrency market. Not only does it increase accessibility for professional investors, it also symbolizes wider acceptance and institutional adoption of digital assets in the UK.

At the same time, the United Kingdom rushed to pass the Ethereum spot ETF before the United States passed it. Public opinion believes that this will increase the possibility of the United States passing it.

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