As an experienced financial analyst, I’m excited about the latest development in the cryptocurrency market with WisdomTree’s Bitcoin and Ethereum exchange-traded products (ETPs) receiving approval from the UK Financial Conduct Authority (FCA) to list on the London Stock Exchange (LSE). This expansion into Europe is significant, given the growing interest and adoption of digital assets across the continent.
As a financial analyst, I’m excited to share that WisdomTree, headquartered in New York, has secured regulatory approval from the United Kingdom’s financial authorities. This green light enables WisdomTree to list its unleveraged cryptocurrency exchange-traded products (ETPs), which are backed physically and follow the price movements of Bitcoin and Ethereum, on the London Stock Exchange (LSE).
According to Bloomberg’s report, the Financial Conduct Authority (FCA) granted approval for these Exchange-Traded Funds (ETFs) to initiate trading on the 11th largest global stock exchange on May 28.
As an ETF analyst, I’ve observed that the upcoming new products won’t be accessible to individual investors. Consequently, the market influence of this listing is expected to be relatively minimal.
This year, the United States Securities and Exchange Commission gave its approval to several Bitcoin exchange-traded funds (ETFs) based on spot markets. The announcement was met with great excitement, rekindling enthusiasm for cryptocurrencies and pushing Bitcoin’s price to unprecedented heights in March.
European Exchange-Traded Products, or ETPs, have been a part of the financial landscape since 2019. A number of even less commonly known cryptocurrencies boast their own European ETPs.
The main distinction between these products and the widely discussed U.S. Bitcoin ETF is rooted in legal differences. According to Michael Delew, head of capital markets at WisdomTree, European ETFs are not permitted to provide direct exposure to a single commodity. Instead, they employ the “ETP” (Exchange-Traded Product) framework, which provides investors with an investment experience akin to holding a specific cryptocurrency.
A noteworthy point is that U.S.-based Bitcoin Exchange-Traded Funds (ETFs) do not allow investors to deposit the actual cryptocurrency as part of their investment. Rather, these funds process transactions using cash orders instead.
In addition to WisdomTree, other companies like CoinShares, 21Shares, and ETC Group provide cryptocurrency Exchange-Traded Products (ETPs). These firms have submitted applications for listing their offerings on the London Stock Exchange (LSE).
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2024-05-22 18:59