WisdomTree plans to introduce crypto Exchange Traded Products (ETPs) in the UK, with institutional investors preparing to invest, contingent on forthcoming Financial Conduct Authority (FCA) approval.
The upcoming approval is expected to draw substantial institutional funds into crypto, potentially enhancing the legitimacy and liquidity of Bitcoin and Ethereum.
WisdomTree Prepares UK Crypto ETP Launch
WisdomTree is preparing to launch crypto ETPs in the UK pending FCA approval. This move follows a survey indicating 40% of professional investors are interested in increasing their digital asset exposure by 2025.
Alexis Marinof, Head of Europe at WisdomTree, highlighted the importance of providing a diversified entry point into the crypto market. Institutional investors are a primary audience, with regulatory barriers easing.
Alexis Marinof, Head of Europe at WisdomTree, stated, “This ETP provides a highly diversified entry point into the crypto ecosystem, further democratising access to a historically difficult part of the market to get exposure to.” – WisdomTree Blog
Institutional Capital Predicted to Boost UK Crypto Market
Institutional involvement in UK ETPs promises substantial new capital flows, potentially enhancing Bitcoin and Ethereum liquidity. Historically, similar approvals have significantly affected asset performance and market dynamics.
Financial and regulatory landscapes may experience shifts, with institutions drawn by reduced fees and improved accessibility. Survey data shows significant interest in diversifying portfolios through crypto investment.
European ETP Launches: Historical Impact on Markets
Prior approvals, like the US Spot Bitcoin ETF, showed significant capital inflows. European ETP launches drove price and liquidity hikes for impacted assets, mirroring potential outcomes for current UK attempts.
Experts highlight that previous ETF/ETP introductions in major markets have been transformative. Institutional access is viewed as a key step in legitimizing crypto, potentially mirroring past US and European impacts.
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