WisdomTree Receives Approval From UK FCA To List Its Physical Bitcoin And Physical Ethereum ETPs On London Stock Exchange
In Brief
WisdomTree received approval from the UK FCA to launch its Physical Bitcoin and Physical Ethereum ETPs on London Stock Exchange.
Asset management company WisdomTree announced it has received approval from the United Kingdom Financial Conduct Authority (FCA). It will launch its WisdomTree Physical Bitcoin (BTCW) and WisdomTree Physical Ethereum (ETHW) exchange-traded products (ETPs) on the London Stock Exchange. The listing is scheduled for May 28th.
These products are completely physically-backed Bitcoin and Ethereum ETPs with a management expense ratio (MER) of 0.35%. This fee structure is among the lowest for institutional-grade Bitcoin and Ethereum ETPs in Europe.
The goal of an ETP is to closely mirror the performance of an underlying asset or benchmark with high efficiency and accuracy. Physical ETPs accomplish this by directly purchasing the asset they aim to track.
Furthermore, physically-backed cryptocurrency ETPs are similar to spot cryptocurrency exchange-traded funds (ETFs) in that both hold cryptocurrencies as their underlying asset. While both aim to track the price closely, a spot ETF might use derivatives to achieve this without requiring the investor to hold the actual tokens. In contrast, physically-backed ETPs provide investors with a share of the tokens owned by the fund, which are kept in cold storage.
WisdomTree Expands Crypto Services In New York State With Recent Charter Acquisition
The New York-based firm WisdomTree manages over $111 billion in assets globally. In January, its WisdomTree Bitcoin Fund (BTCW) was one of the investment products approved to operate a spot Bitcoin ETF in the United States. Since 2019, the company has been providing cryptocurrency products on various exchanges in the European Union.
Recently, WisdomTree received a charter from the New York State Department of Financial Services, allowing it to provide crypto-related services within the state. This permits the firm to provide fiduciary custody of digital assets, encompassing digital wallet services, issue and exchange approved stablecoins. Additionally, it allows the company to operate stablecoin reserves through the newly established WisdomTree Digital Trust Company, LLC.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
