The UK Financial Conduct Authority (FCA) has approved asset management firm WisdomTree to list its Bitcoin and Ethereum exchange-traded products (ETPs) on the London Stock Exchange (LSE).
BREAKING: π¬π§ FCA approved #Bitcoin Listing of publicly traded products on the London Stock Exchange.
Gradually then suddenly π pic.twitter.com/hMjN24qRMl
– Bitcoin Magazine (@BitcoinMagazine) May 22, 2024
The Financial Conduct Authority (FCA) has given the green light for WisdomTree's physical Bitcoin exchange-traded products to begin trading on May 28. The $111 billion AUM company will initially offer products exclusively to professional investors.
The move follows the Financial Conduct Authority (FCA) announcing in March that it would no longer object to Bitcoin ETP listings for professional investors. It also follows the approval of bitcoin ETFs in the US and Hong Kong earlier this year.
WisdomTree said it is among the first companies to receive FCA approval for its Bitcoin ETP prospectus. This represents a shift in the regulator's stance after banning such offers in 2020.
But with major markets such as the US and Hong Kong gearing up for regulated Bitcoin funds, the financial watchdog has softened its stance. However, it plans to keep the ban in place for retail investors.
This reversal reflects the steadily increasing adoption of Bitcoin ETFs even among traditional institutions. Recent Securities and Exchange Commission (SEC 13F) filings revealed that major banks and financial giants have purchased significant shares of Bitcoin ETFs traded in the United States.
WisdomTree plans to charge an expense ratio of 0.35% on Bitcoin exchange-traded products listed on the London Stock Exchange. The company already offers Bitcoin ETP products on European exchanges and manages a Bitcoin ETF in the US.
Some believe that FCA approval could stimulate further institutional adoption by removing regulatory uncertainty and barriers to Bitcoin for UK investors. By giving the green light to WisdomTree's Bitcoin exchange-traded product, the UK regulator is also confirming that Bitcoin is here to stay.
