As
cryptocurrency enthusiasts eagerly await the approval of a physically-backed
Ethereum (ETH) exchange-traded fund (ETF) in the US, London has also seen a
groundbreaking development.
The UK’s
Financial Conduct Authority (FCA) has approved two crypto exchange-traded
products (ETPs) by WisdomTree, which are soon to debut on the London Stock
Exchange (LSE). 21Shares is also set to introduce its own instrument soon, after recent regulatory approval. ShareRewrite.
WisdomTree,
a global issuer of exchange-traded products and funds with nearly $112 billion
under management, announced on Wednesday that it received FCA approval to
launch two new instruments on the LSE: WisdomTree Physical Bitcoin (BTCW) and
WisdomTree Physical Ethereum (ETHW).
These
physically backed ETPs are expected to launch next week, on May 28, 2024, and
will initially be available only to professional investors, though there is a
chance they will also reach retail investors in the future.
“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,”
commented Alexis Marinof, the Head of Europe at WisdomTree.
on Terminal: WisdomTree said it’s received approval from the FCA to list physically-backed Bitcoin and Ether exchange-traded products in London (for professionals only)
all approved crypto ETPs are expected to go live on May 28— Emily Nicolle (@emilyjnicolle) May 22, 2024
The new
instrument is set to offer competitive trading conditions compared to other
crypto ETPs listed in Europe. The management expense ratio (MER) will be 0.35%.
“FCA
approval in this regard could result in greater institutional adoption of the
asset class, as many professional investors have been unable to gain exposure
to Bitcoin and other cryptocurrencies due to regulatory limitations and
uncertainty,” Marinof added.
21Shares is also entering the market and already offers cryptocurrency instruments on nearly a dozen different exchanges.
“London
hosts one of the deepest, most liquid capital markets in the world – where
there is proven institutional interest in cryptocurrencies,” said Ophelia Snyder, the Co-Founder of 21Shares. “As the largest
global issuer of crypto-backed ETPs with more than 40 funds listed on 11
different exchanges, we are delighted to be listing on the London Stock
Exchange, following a recent approval from the FCA.”
WisdomTree Bitcoin Fund
It’s
important to note that WisdomTree was one of the first to issue crypto ETPs in
Europe in 2019, a year after 21Shares introduced this type of instrument. They currently offer a range of such instruments, which are
listed on exchanges in Germany, Switzerland, and in Paris and Amsterdam.
WisdomTree
was also among the companies that launched the first-ever spot Bitcoin ETF on
Wall Street in the first half of January 2024.
„The
WisdomTree Bitcoin Fund is an exchange-traded fund whose investment objective
is to gain exposure to the price of bitcoin, less expenses and liabilities, by
holding bitcoin. The Fund will generally value its shares daily using an
independently calculated value based on an aggregation of executed trade flow
of major bitcoin spot exchanges,” the WisdomTree commented.
BTCW is
currently priced at just under $74, close to its historical highs and showing a
direct correlation with the price of Bitcoin. Since the lows of January, it has
gained over 80%.
What is the
difference between ETP and ETF? ETPs are a broad category that includes various
investment instruments like ETFs, exchange-traded nots (ETNs), and exchange -traded
commodities (ETCs). ETFs are a specific type of ETP, so all ETFs are ETPs but
not all ETPs are ETFs.
As
cryptocurrency enthusiasts eagerly await the approval of a physically-backed
Ethereum (ETH) exchange-traded fund (ETF) in the US, London has also seen a
groundbreaking development.
The UK’s
Financial Conduct Authority (FCA) has approved two crypto exchange-traded
products (ETPs) by WisdomTree, which are soon to debut on the London Stock
Exchange (LSE). 21Shares is also set to introduce its own instrument soon, after recent regulatory approval. ShareRewrite.
WisdomTree,
a global issuer of exchange-traded products and funds with nearly $112 billion
under management, announced on Wednesday that it received FCA approval to
launch two new instruments on the LSE: WisdomTree Physical Bitcoin (BTCW) and
WisdomTree Physical Ethereum (ETHW).
These
physically backed ETPs are expected to launch next week, on May 28, 2024, and
will initially be available only to professional investors, though there is a
chance they will also reach retail investors in the future.
“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,”
commented Alexis Marinof, the Head of Europe at WisdomTree.
on Terminal: WisdomTree said it’s received approval from the FCA to list physically-backed Bitcoin and Ether exchange-traded products in London (for professionals only)
all approved crypto ETPs are expected to go live on May 28— Emily Nicolle (@emilyjnicolle) May 22, 2024
The new
instrument is set to offer competitive trading conditions compared to other
crypto ETPs listed in Europe. The management expense ratio (MER) will be 0.35%.
“FCA
approval in this regard could result in greater institutional adoption of the
asset class, as many professional investors have been unable to gain exposure
to Bitcoin and other cryptocurrencies due to regulatory limitations and
uncertainty,” Marinof added.
21Shares is also entering the market and already offers cryptocurrency instruments on nearly a dozen different exchanges.
“London
hosts one of the deepest, most liquid capital markets in the world – where
there is proven institutional interest in cryptocurrencies,” said Ophelia Snyder, the Co-Founder of 21Shares. “As the largest
global issuer of crypto-backed ETPs with more than 40 funds listed on 11
different exchanges, we are delighted to be listing on the London Stock
Exchange, following a recent approval from the FCA.”
WisdomTree Bitcoin Fund
It’s
important to note that WisdomTree was one of the first to issue crypto ETPs in
Europe in 2019, a year after 21Shares introduced this type of instrument. They currently offer a range of such instruments, which are
listed on exchanges in Germany, Switzerland, and in Paris and Amsterdam.
WisdomTree
was also among the companies that launched the first-ever spot Bitcoin ETF on
Wall Street in the first half of January 2024.
„The
WisdomTree Bitcoin Fund is an exchange-traded fund whose investment objective
is to gain exposure to the price of bitcoin, less expenses and liabilities, by
holding bitcoin. The Fund will generally value its shares daily using an
independently calculated value based on an aggregation of executed trade flow
of major bitcoin spot exchanges,” the WisdomTree commented.
BTCW is
currently priced at just under $74, close to its historical highs and showing a
direct correlation with the price of Bitcoin. Since the lows of January, it has
gained over 80%.
What is the
difference between ETP and ETF? ETPs are a broad category that includes various
investment instruments like ETFs, exchange-traded nots (ETNs), and exchange -traded
commodities (ETCs). ETFs are a specific type of ETP, so all ETFs are ETPs but
not all ETPs are ETFs.