The UK’s Financial Conduct Authority (FCA) has approved asset manager WisdomTree to list its Bitcoin and Ethereum exchange-traded products (ETPs) on the London Stock Exchange (LSE).
BREAKING NEWS: đŹđ§ Approved by the Financial Conduct Authority. #Bitcoin ETP to be listed on the London Stock Exchange.
Gradually and then suddenly đ pic.twitter.com/hMjN24qRMl
â Bitcoin Magazine (@BitcoinMagazine) May 22, 2024
The FCA has approved WisdomTree’s physical Bitcoin ETP to begin trading on May 28. The $111 billion AUM company will initially offer its products only to professional investors.
The move follows the FCA’s announcement in March that it would no longer object to the listing of Bitcoin ETPs for professional investors. This also follows the approval of Bitcoin spot ETFs in the US and Hong Kong earlier this year.
WisdomTree claimed to be one of the first companies to have a Bitcoin ETP prospectus approved by the Financial Conduct Authority, which has traditionally been wary of Bitcoin. This represents a change in the regulator’s stance after banning such services in 2020.
However, as major markets such as the US and Hong Kong began regulating Bitcoin funds, the FCA softened its stance. However, the ban on individual investors is planned to remain in place.
This reversal reflects the steady increase in Bitcoin ETF adoption even among traditional institutions. Recent SEC 13F filings show that major banks and financial giants have purchased a significant portion of U.S. spot Bitcoin ETFs.
WisdomTree plans to charge an expense ratio of 0.35% for Bitcoin ETPs listed on the LSE. The company already offers Bitcoin ETPs on European exchanges and operates a Bitcoin ETF in the United States.
Some believe FCA approval could spur greater institutional adoption by removing regulatory uncertainty and barriers to Bitcoin for UK investors. UK regulators have given the green light to WisdomTree’s landmark Bitcoin ETP, further proving that Bitcoin is here to stay.