WisdomTree secures FCA approval for bitcoin and ether ETP listings on the London Stock Exchange

WisdomTree has received approval from the UK's Financial Conduct Authority to list the WisdomTree Physical Bitcoin and WisdomTree Physical Ethereum exchange-traded products on the London Stock Exchange.

The asset manager is among the first issuers to have its prospectus for cryptocurrency ETPs approved by the FCA, and the listing date is expected to be Tuesday, May 28.

"The FCA approval of our crypto ETPs’ prospectus is a significant step forward for the industry and UK-based professional investors seeking exposure to the asset class. While UK-based professional investors have been able to allocate to crypto ETPs via overseas exchanges, they will soon have a more convenient access point," WisdomTree Head of Europe Alexis Marinof said.

FCA approval removes investment barriers

Marinof added that the FCA approval could result in greater institutional adoption of the asset class, as many UK-based 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," the WisdomTree executive said.

According to WisdomTree's press release on Wednesday, the ETPs will have a management expense ratio of 0.35%. "This represents one of the lowest fee levels for institutional-grade bitcoin and ethereum ETPs in Europe," the statement by WisdomTree added.

FCA approval of crypto ETNs 

The WisdomTree news follows the FCA's approval for cryptocurrency exchange-traded note listings on UK exchanges in March.

However, crypto ETNs in the UK will only be available to professional investors, as the ban on retail access remains in place.

To be listed on the LSE, crypto ETNs must be physically backed, non-leveraged, and offer exposure to only bitcoin and ether. 

WisdomTree currently offers eight physically-backed crypto ETPs that provide spot price exposure for bitcoin and ether. These ETPs are listed on the Deutsche Börse Xetra, the Swiss Stock Exchange (SIX), and Euronext exchanges in Paris and Amsterdam.

On Wednesday, a spokesperson for CryptoUK said they are pleased to see that the FCA has approved the applications of some providers to list physically-backed bitcoin and ether ETPs on the LSE.

"The move is a step in the right direction for the UK, its equity markets and the government’s aspiration to secure Britain as a global crypto-asset hub. We would, however, reiterate that we would like to see more crypto-related instruments available to both institutional and retail investors in the UK. The country risks falling behind U.S. equity markets, which have seen a surge in interest for bitcoin ETFs," CryptoUK added.