The UK's Financial Conduct Authority (FCA) has approved asset manager WisdomTree to list bitcoin and ethereum exchange-traded products (ETPs) on the London Stock Exchange (LSE).
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BREAKING: The Financial Conduct Authority has approved twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin The ETPs will be listed on the London Stock Exchange.
Little by little and then suddenly pic.twitter.com/hMjN24qRMl
– bitcoin Magazine (@BitcoinMagazine) twitter.com/BitcoinMagazine/status/1793229627499876862?ref_src=twsrc%5Etfw”>May 22, 2024
The FCA gave the green light for WisdomTree's physical bitcoin ETPs to begin trading on May 28. The $111 billion AUM firm will initially offer the products exclusively to professional investors.
This move follows the FCA's March announcement that it would no longer oppose bitcoin ETP listings for professional investors. It also follows the approval of bitcoin spot ETFs in the US and Hong Kong earlier this year.
WisdomTree argued that it is among the first companies to get its bitcoin ETP prospectus approved by the traditionally bitcoin-cautious FCA. This represents a change in the regulator's position after prohibiting these types of offers in 2020.
But as major markets such as the United States and Hong Kong move closer to regulated bitcoin funds, the FCA has relaxed its stance. However, it plans to maintain the ban for retail investors.
The reversal reflects the growing adoption of bitcoin ETFs even among traditional institutions. Recent SEC 13F filings revealed that major banks and financial giants have purchased significant shares of US spot bitcoin ETFs.
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WisdomTree plans to charge a 0.35% expense ratio on its LSE-listed bitcoin ETPs. The company already offers bitcoin ETPs on European exchanges and operates a bitcoin ETF in the United States.
Some believe that FCA approval could spur greater institutional adoption by removing regulatory uncertainty and barriers to bitcoin for UK investors. By giving the green light to WisdomTree's flagship bitcoin ETPs, the UK regulator further validates that bitcoin is here to stay.
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