London Stock Exchange to List Physically-Backed Bitcoin and Ethereum ETPs

London Stock Exchange to List Physically-Backed Bitcoin and Ethereum ETPs

An international exchange-traded fund provider, WisdomTree, has become one of the first issuers to have its cryptocurrency exchange-traded products (ETPs) listed on the London Stock Exchange (LSE). This development signifies a major milestone for both the industry and professional investors based in the United Kingdom.

FCA Approval: A Pivotal Moment

WisdomTree, renowned for its innovative exchange-traded funds (ETFs) and ETPs, recently received approval from the British Financial Conduct Authority (FCA) to list its physically-backed Bitcoin and Ethereum ETPs on the LSE. This approval is set to enhance the accessibility of cryptocurrency investments for professional investors in the UK, who have previously faced regulatory challenges and uncertainty.

In a blog post dated May 22, Alexis Marinof, head of Europe at WisdomTree, highlighted the significance of this approval, describing it as a “significant step forward for the industry” in the UK. Marinof emphasized that this development would help in reducing the barriers to entry for many professional investors who were previously unable to gain exposure to Bitcoin and other cryptocurrencies.

Expanding Access to Crypto Investments

WisdomTree’s crypto ETPs are not new to the market. They are already listed on other major stock exchanges, including Deutsche Börse Xetra, the Swiss Stock Exchange SIX, and Euronext exchanges in Paris and Amsterdam. The anticipated listing of WisdomTree’s Bitcoin (BTCW) and Ethereum (ETHW) ETPs on the LSE is scheduled to commence on May 28, 2024.

Tailored for Professional Investors

It is important to note that the cryptocurrency exchange-traded notes (ETNs) planned for trading on the LSE will be restricted to professional investors. These ETNs will operate within designated trading segments, providing a regulated and structured environment for crypto investments. Each crypto ETN may offer up to three different currency lines, which enhances flexibility for investors seeking to diversify their exposure to cryptocurrencies through traditional financial markets.

Enhancing Market Flexibility

The introduction of these crypto ETPs on the LSE is expected to offer professional investors more versatile investment options. By providing physically-backed products, WisdomTree ensures that each ETP is backed by the actual underlying cryptocurrency, thereby offering greater security and reliability to investors.

Conclusion

The listing of WisdomTree’s physically-backed Bitcoin and Ethereum ETPs on the London Stock Exchange is a landmark event that signifies a growing acceptance and integration of cryptocurrencies into mainstream financial markets. With FCA approval, UK-based professional investors will now have more opportunities to gain exposure to digital assets, marking a new chapter in the evolution of cryptocurrency investments.