Fidelity Investments Floats Physically-Backed Bitcoin ETPs on LSE

Fidelity Investments, an American digital asset firm, has introduced a physical Bitcoin (BTC) Exchange-Traded Product (ETP) on the London Stock Exchange (LSE). According to the announcement, this milestone provides professional investors with a secure, cost-effective investment avenue in Bitcoin. It also marks a significant step in making cryptocurrency investments more accessible and mainstream.

Fidelity Bitcoin ETP Designed to Track BTC Price Movement

Notably, the Fidelity Physical Bitcoin ETP is designed to track Bitcoin’s price movements. This product is particularly appealing due to its competitive fee structure. Fidelity has set the ongoing charges figure (OCF) for the ETP at 0.35%, a notable reduction from the previous 0.75%. 

Meanwhile, this physical Bitcoin ETP introduction aligns with the growing trend of institutional interest in digital assets. It marks a pivotal moment for the cryptocurrency industry in the UK. The Fidelity Bitcoin ETP also benefits from the robust infrastructure and regulatory oversight of the London Stock Exchange, adding an extra layer of credibility and trust for investors. 

WisdomTree Launch Crypto ETPs

In May, WisdomTree, a New York-based asset management firm, secured approval from the Financial Conduct Authority to launch physically-backed Bitcoin and Ethereum Exchange-Traded Products on the London Stock Exchange. According to reports by TheCoinRise, this milestone positions WisdomTree among the first issuers to receive FCA approval for a prospectus dedicated to cryptocurrency ETPs.

Interestingly, the ETPs launch on the LSE is expected to drive further institutional interest in cryptocurrencies, bridging the gap between digital assets and conventional investment platforms. These ETPs were listed on the LSE by the end of May and are available exclusively to professional investors.

WisdomTree’s crypto ETPs are listed on the Swiss Exchange SIX, Deutsche Borse Xetra, and Euronext exchanges in Paris and Amsterdam. However, WisdomTree’s European crypto ETPs are available for sale in several countries like Austria, Norway, Italy, Germany, Spain, Belgium, France, Denmark, Luxembourg, Finland, and the United Kingdom.

FBTC Spot Bitcoin ETF Shines With Remarkable Growth

Recall that in April, Fidelity’s FBTC Spot Bitcoin Exchange-Traded Fund surpassed 150,000 BTC ($10.1 billion) in Assets Under Management (AUM) within three months since its inception. This success underscores the substantial capital inflows into the crypto market through regulated investment vehicles.

According to data, BlackRock’s IBIT leads with 263,937 BTC ($18.5 billion), while Ark Invest 21Shares’ ARKB is the third with 43,726 BTC ($3.1 billion).

As previously reported, the LSE launched cryptocurrency exchange-traded notes (ETNs) tracking the performance of BTC and ETH. As such, the LSE said it would accept applications for the admission of bitcoin and ether crypto ETNs in the second quarter of this year.