UK Gets Its First Low-Cost Crypto ETPs as WisdomTree Lands FCA Approval

• UK regulatory approval paves the way for wider institutional crypto adoption.
• WisdomTree offers low-cost, physically-backed Bitcoin and Ethereum ETPs on the LSE.
• The SEC’s approval of Bitcoin ETFs in the US has led to adoption by other countries.

In a move that could significantly expand access to cryptocurrencies for institutional investors in the UK, WisdomTree received approval from the Financial Conduct Authority (FCA) to list its Physical Bitcoin (BTCW) and Ethereum (ETHW) exchange-traded products (ETPs) on the London Stock Exchange (LSE).

The listing, expected for May 28th, comes just two months after the LSE’s initial announcement and positions WisdomTree as one of the first issuers to secure a crypto ETP listing with the FCA.

These physically-backed ETPs boast a competitive Management Expense Ratio (MER) of 0.35%, making them among the most affordable institutional-grade crypto exposure in Europe.

Reacting to this news, Alexis Marinof, Head of Europe at WisdomTree, emphasized that this listing is essential for industry growth and will increase crypto participation in the UK market. He stated:

“FCA approval in this respect 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 – we would expect FCA approval of our crypto ETPs’ prospectus to remove those barriers to entry.”

WisdomTree has pioneered institutional-grade crypto products in Europe, launching its first Physical Bitcoin ETP in 2019. The firm currently offers a diverse portfolio of eight physically backed crypto ETPs, including both single-asset and diversified crypto baskets.

The recent wave of regulatory approvals for crypto products around the world appears to be driven, in part, by the success of Bitcoin ETFs in the US, which saw significant inflows following their launch. This has prompted other financial centers, like Hong Kong, to fast-track their own crypto investment offerings.

Notably, Hong Kong recently approved Bitcoin and Ether ETFs with features like in-kind transfers and multiple fiat currency denominations, allowing for more convenient investment options. However, despite these functionalities, Hong Kong’s ETFs attracted a relatively modest $22.5 million on their first day of trading, highlighting the nascent stage of institutional adoption in this market.