WisdomTree to launch crypto ETFs in UK by end of May
Date: 2024-05-23 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
WisdomTree has received approval from the UK Financial Conduct Authority (FCA) to launch two cryptocurrency exchange-traded funds on the London Stock Exchange (LSE). In a press release, WisdomTree emphasized that these funds will be fully backed by crypto assets and not derivative products.
Investments in real crypto assets
WisdomTree plans to launch two crypto funds: WisdomTree Physical Bitcoin (BTCW) and WisdomTree Physical Ethereum (ETHW). Unlike other funds that may use derivatives to track the prices of cryptocurrencies, these funds will invest directly in digital assets. This means that every share of BTCW and ETHW will be 100% backed by the corresponding cryptocurrencies.
Start date of trading and commissions
Trading for these funds on the London Stock Exchange will begin approximately on May 28, 2024. The products will be available exclusively to professional investors. The management fee will be 0.35%, which is one of the lowest levels for cryptocurrency exchange-traded funds in Europe. However, this is still higher than the fees for spot Bitcoin ETFs in the US.
Implications for professional investors
Alexis Marinof, Head of Europe at WisdomTree, said: “The FCA's approval of the prospectus for our cryptocurrency ETPs is a significant step forward for the industry and UK professional investors seeking exposure to this asset class. While UK professional investors have been able to invest in cryptocurrency ETPs through overseas exchanges, they will soon have a more convenient access point.”
Growing Interest in Crypto ETFs
Earlier it was reported that interest in spot Bitcoin ETFs in the United States was growing, which is confirmed by the influx of capital into this sector for the seventh day in a row. The launch of WisdomTree's cryptocurrency ETFs in the UK could be an important step in expanding access to digital assets in the European market.
The approval from the FCA and the upcoming launch of WisdomTree's cryptocurrency ETFs on the London Stock Exchange mark significant progress in the accessibility of cryptocurrencies to professional investors in the UK. These funds will provide new opportunities for investment in real-world crypto assets, which could stimulate further growth and adoption of digital assets in the European market.
