This milestone allows professional investors to access cryptocurrency investments through regulated channels.
WisdomTree Physical Bitcoin (BTCW) and WisdomTree Physical Ethereum (ETHW) will begin trading on May 28. These ETPs are designed exclusively for professional investors and carry a management expense ratio of 0.35%, making it one of the lowest fee levels for institutional-grade Bitcoin and Ethereum ETPs in Europe.
The FCA's recent policy adjustment, which relaxed restrictions on crypto products imposed after a 2020 ban, has paved the way for this development. In March 2024, the regulator announced it would allow financial institutions to list ETPs for professional investors. However, it still restricts these products for retail investors, maintaining a cautious stance on wider cryptocurrency market exposure.
Alexis Marinof, WisdomTree's Head of Europe, highlighted that UK investors previously used overseas exchanges for such assets. The recent move provides a more convenient local option.
“The FCA approval of our crypto ETPs' prospectus is a significant step forward for the industry and UK-based professional investors seeking exposure to the asset class,” he said.
WisdomTree isn't the only company to get a green light from FCA. Emily Nicolle from Bloomberg reported that 21Shares and Invesco also had their ETP prospectuses endorsed by the regulator today.
WisdomTree's ETPs are physically backed, directly holding the underlying assets, Bitcoin and Ethereum. This structure provides a transparent, secure investment vehicle distinct from leveraged or derivative-based products.
Currently, 88 Crypto ETPs manage a total of $12,705.34 million in assets. Bitcoin and Ethereum account for over 73% of the total Assets Under Management (AUM) in the current ETP market. The WisdomTree Physical Bitcoin ETP ranks second in the top 10 Crypto ETPs by net flows over the last 30 days, following the 21Shares Bitcoin Core ETP.
WisdomTree's pioneering efforts in crypto ETPs began with the launch of the WisdomTree Physical Bitcoin ETP in 2019. Since then, the company has expanded its offerings to include a range of products that cater to various investment strategies and risk appetites. Their listings across major European exchanges demonstrate crypto assets' growing demand and acceptance.
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