WisdomTree, a UK-based asset management company, received approval from the Financial Conduct Authority (FCA).
WisdomTree, an asset management company based in the UK, announced Financial Conduct Authority (FCA) approval. The company plans to go public on the London Stock Exchange with its WisdomTree Physical Bitcoin (BTCW) and WisdomTree Physical Ethereum (ETHW) ETPs. We expect the listing to go live on May 28th.
These products have a management expense ratio (MER) of 0.35 percent, fully backed by Bitcoin and Ethereum ETPs. Regarding European institutional-grade Bitcoin and Ethereum ETPs, this fee structure is among the lowest.
A well-designed ETP will efficiently and accurately mimic the performance of a benchmark or underlying asset. Physical ETPs achieve this by actually buying the asset that they want to keep tabs on.
Additionally, cryptocurrencies serve as the underlying asset for both spot cryptocurrency ETFs and physically-backed cryptocurrency ETPs. In this regard, they are comparable.
Both seek to closely follow the price, but a spot ETF may employ derivatives instead of holding tokens to do this. In contrast, investors in physically-backed ETPs get a stake in the cold-storage tokens that the fund owns.
WisdomTree’s recent charter acquisition allows it to extend crypto services across the Empire State
The New York-based firm manages over $111 billion in assets worldwide. Among the investment products authorized to run a spot Bitcoin ETF in the US in January was the WisdomTree Bitcoin Fund (BTCW). Various exchanges in the EU have been offering the company’s bitcoin products since 2019.
The state’s Department of Financial Services recently granted them a charter to offer crypto-related services in New York. By doing so, the company is able to offer digital wallet services, issue and trade stablecoins, and give fiduciary custody of digital assets. It also permits the firm to run stablecoin reserves via the recently formed WisdomTree Digital Trust Company, LLC.