WisdomTree Launches Bitcoin and Ethereum ETPs on London Stock Exchange

• Launching on the London Stock Exchange, WisdomTree’s cryptocurrency ETPs are FCA certified.
• The first-year attraction of an Ethereum ETF that the SEC has approved could reach $45 billion, according to Standard Chartered Bank.

Today, the global issuer of exchange-traded products and funds overseeing around $112 billion, WisdomTree, said that it has been granted FCA clearance to introduce two new products on the LSE: WisdomTree Physical Ethereum (ETHW) and WisdomTree Physical Bitcoin (BTCW).

Accessible for Investors Based in the UK

Expected to debut next week, on May 28, 2024, these physically backed ETPs will first be accessible solely to professional investors, with possible future access for regular investors.

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

“While UK-based professional investors have been able to allocate to crypto ETPs via international exchanges, they will soon have a more accessible entry point,” said WisdomTree’s Head of Europe, Alexis Marinof. He added:

“The new instruments are supposed to provide competitive trading conditions at a 0.35% management expense ratio (MER).”

Following FCA approval, cryptocurrencies may gain more institutional adoption, overcoming the uncertainty and legal restrictions that have hindered professional investors. Marinof emphasized that the wider acceptance of the asset class depends on this regulatory milestone.

History of WisdomTree

In 2019, WisdomTree became the first company in Europe to issue cryptocurrency ETPs, and it now has a variety of these products listed on exchanges in Germany, Switzerland, Paris, and Amsterdam. In addition, in January 2024, WisdomTree debuted the first Bitcoin ETF on Wall Street.

Holding the asset with fewer costs and liabilities, the WisdomTree Bitcoin Fund seeks to obtain exposure to the price of Bitcoin. Shares are priced daily according to the executed trade flow of the main Bitcoin spot exchanges. With a rise of more than 80% since January, BTCW is now valued at little under $74, close to its historical highs.

Situation of the Market

However, CoinMarketCap data shows that BTC is currently valued at about $70,057.56, down 1.73% in the last day but still in a bullish position after increasing by 29.10% in the previous week.

ETH, in the meantime, is trading at about $3,735.81, also down 1.35% in the last 24 hours and continuing its upward trajectory from the previous week.

Expectations for Ethereum ETF

On the other hand, further underscoring the substantial market interest and possible influence of such regulatory decisions, Standard Chartered Bank projects that the approval of a spot Ethereum ETF by the SEC could draw between $15 billion and $45 billion in its first year, according to a previous report by CNF.