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London Stock Exchange Lists Bitcoin and Ethereum ETPs, Begins Trading
- Wisdom Tree announced the listing of physically backed Bitcoin and Ethereum ETPs on the London Stock Exchange.
- The funds offer a low management expense ratio of 0.35% and are designed for institutional investors across several countries.
- Increased European interest in crypto ETPs is linked to recent US regulatory approvals and competitive fee structures.
The institutional adoption of crypto continues – last week’s approval for the listing of Spot Ethereum ETFs by US regulators has been welcomed news, and now it’s the UK’s turn.
Wisdom Tree, a global asset manager with headquarters in New York, just announced the listing of Bitcoin and Ethereum exchange-traded products (ETP) on the London Stock Exchange (LSE).
Related: Bitcoin Battles and Record Crypto Inflows: The Pulse of Digital Markets
The company specialises in exchange-traded funds (ETFs) and products and has 250 funds listed on the LSE. They have US$755 million assets under management in crypto related funds, which are accessible to institutional investors.
The funds, which will have direct exposure to the crypto assets, will have a very low fee of 0.35%.
The Head of Europe for WisdomTree, Alexis Marinof, said in a press release that they have seen more interest in crypto since the US approval:
Interest in the asset class amongst European investors has significantly increased this year, in part due to a new fee environment for these ETPs and the launch of US spot bitcoin ETFs. We expect this development to be an inflection point for Crypto ETPs in the UK since it means professional investors now have a more convenient and locally-regulated access point with the familiar ETP wrapper.
Alexis Marinof Funds Offer Physically Backed Exposure
An ETF is a type of ETP that specifically functions like a traditional mutual fund but trades on an exchange like a stock. A Spot Bitcoin ETF directly invests in Bitcoin, while the older funds (Grayscale before conversion) invest in futures contracts related to Bitcoin.
ETP, on the other hand, is an umbrella term that includes various types of products such as ETFs, exchange-traded notes (ETNs), and exchange-traded commodities (ETCs). Therefore, a Bitcoin ETP can be an ETF, an ETN, or another similar product.
Wisdom Tree did not state specifically what type of product their fund is other than an ETP, but could well be an ETC due to Bitcoin’s nature as a commodity.
The funds are available in several countries such as the UK, Switzerland, Ireland, Germany and others, albeit to institutional investors only.
Wisdom Tree said their physically backed funds are “designed to offer shareholders a simple, secure and low cost way to gain exposure to the price”.
In the case of Ethereum, they also offer staking rewards, which is something the US funds will not offer. In fact, the US approvals last week came after applicants removed staking from their proposal.
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Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
