The Financial Conduct Authority (FCA), the leading financial regulator in the UK, has given its approval for physically backed bitcoin and ethereum exchange-traded products (ETPs) to be listed on the London Stock Exchange. This marks the first time that such products will be available for trading on the LSE, and it is expected to pave the way for increased institutional adoption of cryptocurrencies.
Wisdomtree and 21shares, two prominent issuers of ETPs, have received the FCA's approval to list their crypto ETPs on the LSE. Wisdomtree's 100% physically backed bitcoin and ethereum ETPs, named Wisdomtree Physical Bitcoin and WisdomTree Physical Ethereum, will be listed on the exchange on Tuesday, May 28th. Initially, these ETPs will be accessible only to professional investors.
The fees for Wisdomtree's bitcoin and ethereum ETPs will be set at 0.35%, which is consistent with similar products listed on other European exchanges. Alexis Marinof, the Head of Europe at Wisdomtree, highlighted the significance of the FCA's approval, emphasizing its potential to drive institutional adoption of cryptocurrencies. All crypto funds listed in the UK will be structured as exchange-traded notes (ETNs), a common framework in the European cryptocurrency market.
In addition to Wisdomtree, 21shares will also cross-list its existing bitcoin and ethereum staking ETPs in the UK. The fees for these products will be set at 1.49%. Ophelia Snyder, co-founder of 21shares, expressed optimism about the potential of the UK market, stating that London's deep and liquid capital market attracts institutional interest in cryptocurrencies.
Wisdomtree further explained the significance of the FCA's approval, stating that it will provide a more convenient access point for UK-based professional investors seeking exposure to cryptocurrencies. The approval is expected to remove regulatory limitations and uncertainty, which have previously prevented many professional investors from entering the market.
The news of the FCA's approval has generated significant interest, and readers are invited to share their thoughts on the matter in the comments section below.