WisdomTree's cryptocurrency ETPs will be able to start trading on London Stock Exchange

New York-based global financial firm WisdomTree has received approval from the United Kingdom's financial regulatory body in order to list its physically-backed nonleveraged cryptocurrency exchange-traded products (ETPs) that track the value of Bitcoin and Ethereum on the London Stock Exchange (LSE).

The Financial Conduct Authority (FCA) has allowed these ETFs to start trading on the 11th biggest stock exchange in the world on May 28, Bloomberg reports.

However, as noted by ETF analyst Eric Balchunas, the new products will not be available for retail investors, meaning that the impact of this listing will be rather subdued. 

Earlier this year, the U.S. Securities and Exchange Commission finally approved a slew of spot-based Bitcoin exchange-traded funds, to much fanfare. These products revived interest in the crypto market, pushing the Bitcoin price to record highs in March. 

European ETPs are nothing new since they have been around since 2019. Even some relatively arcane altcoins have their own ETPs in Europe. 

The key difference between these products and the much-talked-about U.S. Bitcoin ETF lies in legal aspects. As explained by Michael Delew, head of capital markets at WisdomTree, European ETFs cannot offer a single commodity. Hence, they use the "ETP" structure that offers investment similar to exposure to a certain cryptocurrency. 

It is worth noting that U.S. Bitcoin ETFs cannot accept the underlying cryptocurrency in-kind. Instead, they stick to cash orders.  

Apart from WisdomTree, cryptocurrency ETPs are also offered by such firms as CoinShares, 21Shares and ETC Group. They have applied for applications to list their products on the LSE.

About the author

Alex Dovbnya

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at [email protected].

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