May 23, 2024 12:25
Ascryptocurrency enthusiasts eagerly await the approval of a physically-backedEthereum (ETH) exchange-traded fund (ETF) in the US, London has also seen agroundbreaking development.
The UKsFinancial Conduct Authority (FCA) has approved two crypto exchange-tradedproducts (ETPs) by WisdomTree, which are soon to debut on the London StockExchange (LSE). 21Shares is also set to introduce its own instrument soon, after recent regulatory approval. ShareRewrite.
WisdomTree and 21Shares Become FirstCrypto ETPs Issuers in The UK
WisdomTree,a global issuer of exchange-traded products and funds with nearly $112 billionunder management, announced on Wednesday that it received FCA approval tolaunch two new instruments on the LSE: WisdomTree Physical Bitcoin (BTCW) andWisdomTree Physical Ethereum (ETHW).
Thesephysically backed ETPs are expected to launch next week, on May 28, 2024, andwill initially be available only to professional investors, though there is achance they will also reach retail investors in the future.
"WhileUK-based professional investors have been able to allocate to crypto ETPs viaoverseas 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, 2024The newinstrument is set to offer competitive trading conditions compared to othercrypto ETPs listed in Europe. The management expense ratio (MER) will be 0.35%.
"FCAapproval in this regard could result in greater institutional adoption of theasset class, as many professional investors have been unable to gain exposureto Bitcoin and other cryptocurrencies due to regulatory limitations anduncertainty," Marinof added.
21Shares is also entering the market and already offers cryptocurrency instruments on nearly a dozen different exchanges.
"Londonhosts one of the deepest, most liquid capital markets in the world - wherethere is proven institutional interest in cryptocurrencies," said Ophelia Snyder, the Co-Founder of 21Shares. "As the largestglobal issuer of crypto-backed ETPs with more than 40 funds listed on 11different exchanges, we are delighted to be listing on the London StockExchange, following a recent approval from the FCA."
WisdomTree Bitcoin Fund
It'simportant to note that WisdomTree was one of the first to issue crypto ETPs inEurope in 2019, a year after 21Shares introduced this type of instrument. They currently offer a range of such instruments, which arelisted on exchanges in Germany, Switzerland, and in Paris and Amsterdam.
WisdomTreewas also among the companies that launched the first-ever spot Bitcoin ETF onWall Street in the first half of January 2024.
TheWisdomTree Bitcoin Fund is an exchange-traded fund whose investment objectiveis to gain exposure to the price of bitcoin, less expenses and liabilities, byholding bitcoin. The Fund will generally value its shares daily using anindependently calculated value based on an aggregation of executed trade flowof major bitcoin spot exchanges, the WisdomTree commented.
BTCW iscurrently priced at just under $74, close to its historical highs and showing adirect correlation with the price of Bitcoin. Since the lows of January, it hasgained over 80%.
What is thedifference between ETP and ETF? ETPs are a broad category that includes variousinvestment instruments like ETFs, exchange-traded nots (ETNs), and exchange-tradedcommodities (ETCs). ETFs are a specific type of ETP, so all ETFs are ETPs butnot all ETPs are ETFs.
This article was written by Damian Chmiel at www.financemagnates.com.
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