WisdomTree Secures FCA Approval to Launch Crypto ETPs

WisdomTree, a New York-based asset management firm, has secured approval from the Financial Conduct Authority (FCA) to launch physically-backed Bitcoin (BTC) and Ethereum (ETH) Exchange Traded Products (ETPs) on the London Stock Exchange (LSE). According to the announcement, this milestone positions WisdomTree among the first issuers to receive FCA approval for a prospectus dedicated to cryptocurrency ETPs.

WisdomTree Launches Physically Backed BTC and ETH ETPs on LSE

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. Meanwhile, the physically-backed Bitcoin and Ethereum ETPs will be listed on the London Stock Exchange by May 28th.

These ETPs will be available exclusively to professional investors, reflecting a cautious approach to introducing digital asset products. Also, the FCA’s approval of WisdomTree’s prospectus marks a pivotal moment for the cryptocurrency industry in the UK. It signals a readiness among regulators to accommodate and oversee the integration of digital assets into mainstream finance.

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

21Shares Launched a Physical ETP

Recall that in 2022, the Switzerland-based crypto investment product firm 21Shares started trading its Bitcoin ETP on the global stock market Nasdaq Dubai under the ticket ABTC. Hany Rashwan, co-founder and CEO of the investment product firm, said the launched cryptocurrency product is physically backed, implying that it is completely collateralized by the core Bitcoin assets they follow with 1:1 leverage.

Meanwhile, the entry into the United Arab Emirates marked a significant turning point in 21Sgares’ international development. Along with Nasdaq Dubai, 12 exchanges, including SIX Swiss Exchange, Deutsche Borse, EuroNext, BXSwiss, Wiener Borse, Gettex, Borse Stuttgart, Borse Munchen, and Borse Dusseldorf have listed 21Shares ETPs.

Bitwise Working on ETP

Just last month, cryptocurrency asset management firm Bitwise started contemplating the launch of an ETP that would encompass Ethereum’s diverse layer-2 networks and applications. The firm’s chief investment officer Matt Hougan expressed a blend of anticipation and remorse regarding Bitwise’s lack of such a product, acknowledging the potential value it could bring to investors.

Also, he emphasized his confidence in the evolving nature of the Ethereum ecosystem but admitted uncertainty regarding which layer 2 solutions and applications will emerge as dominant forces in the future.

“The best way to approach that would be to own them all, which would be a great product for what it is worth,” Hougan remarked.