WisdomTree, a global issuer of exchange-traded products and funds with approximately $112 billion in assets under management, has received clearance from the Financial Conduct Authority (FCA) to launch two new products on the London Stock Exchange (LSE). These products, called WisdomTree Physical Ethereum (ETHW) and WisdomTree Physical Bitcoin (BTCW), are physically backed exchange-traded products (ETPs) that will be available exclusively to professional investors initially, with the possibility of opening up to regular investors in the future. The launch is scheduled for May 28, 2024.
WisdomTree’s Head of Europe, Alexis Marinof, stated that the introduction of these ETPs will provide UK-based professional investors with a more accessible entry point into the cryptocurrency market. He also highlighted that the management expense ratio (MER) for these instruments will be 0.35%, offering competitive trading conditions.
The FCA’s approval of these ETPs is expected to pave the way for greater institutional adoption of cryptocurrencies, as it helps to overcome regulatory uncertainties and restrictions that have previously hindered professional investors. Marinof emphasized the importance of regulatory milestones in driving wider acceptance of cryptocurrencies as an asset class.
WisdomTree has a history of pioneering cryptocurrency ETPs in Europe, having launched its first products in 2019. These ETPs are currently listed on exchanges in Germany, Switzerland, Paris, and Amsterdam. In January 2024, WisdomTree also debuted the first Bitcoin ETF on Wall Street, called the WisdomTree Bitcoin Fund. This fund aims to provide exposure to the price of Bitcoin with lower costs and liabilities. Since its launch, the fund has seen significant growth, with BTCW now valued at nearly $74.
In the market, Bitcoin is currently valued at around $70,057.56, experiencing a slight decrease of 1.73% in the last day but still maintaining its bullish position after a 29.10% increase in the previous week. Ethereum, on the other hand, is trading at approximately $3,735.81, showing a decrease of 1.35% in the last 24 hours but continuing its upward trajectory from the previous week.
Furthermore, Standard Chartered Bank predicts that if the SEC approves a spot Ethereum ETF, it could attract between $15 billion and $45 billion in its first year, underscoring the significant market interest and potential impact of such regulatory decisions.
Overall, the launch of WisdomTree’s cryptocurrency ETPs on the LSE and the potential approval of an Ethereum ETF highlight the growing acceptance and interest in cryptocurrencies among institutional investors.