WisdomTree, a global issuer of exchange-traded products and funds with assets under management of around $112 billion, has received clearance from the Financial Conduct Authority (FCA) to launch two new products on the London Stock Exchange (LSE). The products, WisdomTree Physical Ethereum (ETHW) and WisdomTree Physical Bitcoin (BTCW), are physically backed exchange-traded products (ETPs) and are expected to debut on May 28, 2024. Initially, these ETPs will only be accessible to professional investors, with the possibility of future access for regular investors.
According to WisdomTree’s Head of Europe, Alexis Marinof, this move will provide UK-based professional investors with a more accessible entry point into cryptocurrencies. Marinof also highlighted that the new instruments will offer competitive trading conditions with a management expense ratio (MER) of 0.35%.
The approval from the FCA could pave the way for increased institutional adoption of cryptocurrencies, as it helps to overcome the uncertainty and legal restrictions that have previously hindered professional investors. Marinof emphasized that the wider acceptance of cryptocurrencies as an asset class depends on reaching this regulatory milestone.
WisdomTree has a history of launching cryptocurrency ETPs, becoming the first company in Europe to do so in 2019. It currently has a variety of these products listed on exchanges in Germany, Switzerland, Paris, and Amsterdam. In January 2024, WisdomTree also introduced the first Bitcoin ETF on Wall Street, the WisdomTree Bitcoin Fund.
The market performance of Bitcoin and Ethereum has been fluctuating recently. According to CoinMarketCap, Bitcoin is currently valued at approximately $70,057.56, experiencing a 1.73% decrease in the last day but still showing bullish signs with a 29.10% increase in the previous week. Ethereum, on the other hand, is trading at around $3,735.81, with a 1.35% decrease in the last 24 hours but maintaining an upward trajectory from the previous week.
In addition, Standard Chartered Bank predicts that the approval of a spot Ethereum ETF by the U.S. Securities and Exchange Commission (SEC) could attract between $15 billion and $45 billion in its first year, highlighting the significant market interest and potential impact of such regulatory decisions.