Bitcoin takes the spotlight as WisdomTree, managing $112 billion, gains FCA approval to launch two new cryptocurrency exchange-traded products (ETPs) on the LSE. Debuting May 28, 2024, alongside WisdomTree Physical Ethereum (ETHW), BTCW leads the charge.
Initially, these physically backed ETPs will be available exclusively to professional investors, with potential future access for retail investors. This development marks a significant milestone for UK-based professional investors who previously accessed crypto ETPs through international exchanges.
Bitcoin ETP Launch
Alexis Marinof, Head of Europe for WisdomTree, said, “UK-based professional investors will soon have an easier way to get into cryptocurrency ETPs.” “With a management expense ratio (MER) of 0.35%, the new instruments are meant to make trading more competitive.”
The FCA’s approval is likely to make institutional adoption of cryptocurrencies stronger by removing the legal uncertainty that has kept professional investors away. Marinof talked about how important this legal step was for more people to see cryptocurrencies as real assets.
Since its first crypto ETPs came out in 2019, WisdomTree has been a leader in the bitcoin ETP space in Europe. The company now has exchanges in Germany, Switzerland, Paris, and Amsterdam where you can buy a range of these goods. The first Bitcoin ETF was also launched on Wall Street by WisdomTree in January 2024.
The goal of the WisdomTree Bitcoin Fund is to give investors access to Bitcoin’s price while keeping costs and risks to a minimum. Every day, the exchange rates for the fund’s shares are used to set their prices. Since January, BTCW has gone up a lot—more than 80%—and is now worth just under $74, which is close to its all-time high.
According to CoinMarketCap, the value of Bitcoin (BTC) is now around $70,057.56. It has dropped by 1.73 percent in value in the last 24 hours, but it has been going up steadily over the past week, rising 29.10 percent. Ethereum (ETH) is selling at about $3,735.81, down 1.35 percent in the last 24 hours. It has been going up since last week.
Standard Chartered Bank thinks that if the U.S. Securities and Exchange Commission (SEC) approves a spot Ethereum ETF, it could bring in between $15 billion and $45 billion in its first year. This shows how governmental decisions can affect market interest.
