WisdomTree has secured approval from the Financial Conduct Authority (FCA) to list its crypto exchange-traded products (ETPs) on the London Stock Exchange (LSE).
The asset manager announced on May 22 that its Physical Bitcoin (BTCW) and Physical Ethereum (ETHW) ETPs will begin trading on May 28, positioning it among the first to have its prospectus approved by the FCA.
These products will be available exclusively to professional investors and will carry fees of 35 basis points.
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In January 2020, the FCA banned crypto derivatives, including ETPs. However, the regulator has adjusted its stance, following the widespread availability of such products in Europe and the approval of US spot Bitcoin ETFs.
In March, the FCA indicated it would not oppose financial institutions listing ETPs for professional investors. The LSE confirmed it would start accepting applications for Bitcoin (BTC) and Ether (ETH) products in the second quarter.
The Head of Europe at WisdomTree, Alexis Marinof, remarked on the approval:
Many professional investors have been unable to gain exposure to Bitcoin and other cryptocurrencies due to regulatory limitations and uncertainty – we would expect FCA approval of our crypto ETPs’ prospectus to remove those barriers to entry.
WisdomTree, headquartered in New York, manages over $111 billion in assets globally. Its WisdomTree Bitcoin Fund (BTCW) was one of the first approved for a spot Bitcoin ETF in the US in January. The firm has been offering crypto products on European exchanges since 2019.
The upcoming listing reflects increased acceptance of crypto products in mainstream financial markets.
Meanwhile, in the US, five major asset managers have updated their spot Ether ETF applications following SEC feedback, fueling optimism about their potential approval.
