Key Takeaways
- WisdomTree approved to list Bitcoin ETPs on London Stock Exchange.
- FCA's decision marks a shift from its 2020 ban on Bitcoin offerings.
- WisdomTree to charge a 0.35% expense ratio for its Bitcoin ETPs.
The UK’s Financial Conduct Authority (FCA) has approved asset manager WisdomTree to list Bitcoin exchange-traded products (ETPs) on the London Stock Exchange (LSE).
Starting May 28, WisdomTree will offer these ETPs exclusively to professional investors.
This marks a significant shift in the FCA’s stance, which previously banned such offerings in 2020.
This approval follows the FCA’s March announcement that it would no longer object to Bitcoin ETP listings for professional investors.
Following Hong Kong
It aligns with the recent approvals of Bitcoin spot ETFs in the US and Hong Kong earlier this year.
WisdomTree, a firm managing $111 billion in assets, is among the first to have its Bitcoin ETP prospectus approved by the FCA.
The approval reflects the growing acceptance of Bitcoin ETFs among traditional institutions. Major banks and financial giants have recently increased their holdings of US spot Bitcoin ETFs, as revealed by recent SEC 13F filings.
Ban for retail
However, the FCA maintains its ban on Bitcoin ETPs for retail investors, focusing the new products on the professional market.
WisdomTree plans to charge a 0.35% expense ratio for its Bitcoin ETPs listed on the LSE.
The firm already offers similar products on European exchanges and operates a Bitcoin ETF in the United States.
This regulatory shift could encourage greater institutional adoption of Bitcoin in the UK by reducing regulatory uncertainty and barriers.
