Bitwise, 21Shares, and WisdomTree Launch Crypto ETPs for UK Retail Investors as FCA Lifts Ban

UK retail investors will soon gain unprecedented access to crypto Exchange Traded Products (ETPs) referencing Bitcoin and Ethereum on the London Stock Exchange (LSE).

This follows the UK Financial Conduct Authority’s (FCA) decision to lift its ban on retail access to crypto ETPs, a move that marks a significant step in integrating digital assets into traditional investment portfolios.

Starting October 21, Bitwise will list four new crypto ETPs for retail investors on the London Stock Exchange, coinciding with the FCA’s policy change.

These include the Bitwise Core Bitcoin ETP (BTC3), Bitwise Ethereum Staking ETP (ET33), Bitwise Physical Bitcoin ETP (BTCE), and Bitwise Physical Ethereum ETP (BETI).

The Bitwise Core Bitcoin ETP fee has been strikingly lowered to a Total Expense Ratio (TER) of 0.05%, down from 0.20%, boosting cost-efficiency for investors.

Retail Crypto Access Unlocks New Investment Doors

For the first time, UK retail investors can access crypto ETPs that are fully backed by digital assets and traded on a FCA-recognized exchange.

This development aligns the UK market with other financial hubs like the US, EU, Hong Kong, and Canada.

Bradley Duke, Managing Director at Bitwise Europe, stated, “We are thrilled to bring Bitcoin and Ethereum ETPs to a broader range of investors in Europe’s largest investment market.

UK investors can now gain exposure to these digital assets through products that are fully collateralized and available through their brokers and tax-advantaged accounts.”

The new ETPs offer physical backing, regulatory compliance under MiFID II, and institutional custody of assets, ensuring investor protection through segregated holdings.

While the digital assets themselves remain unregulated by the FCA, the trading platforms will perform standard investor appropriateness checks, introducing a safer avenue for crypto exposure through regulated financial products.

Lower Costs and Broader Inclusion

With the Bitwise Core Bitcoin ETP’s TER cut to 0.05% for at least six months and possibly longer, the offering becomes one of the most cost-effective crypto products available to retail investors.

Other Bitwise ETPs for Ethereum and Bitcoin come with fees ranging from 0.85% to 2.0%, depending on the product and trading currency.

The FCA also permits these ETPs to be included in Individual Savings Accounts (ISAs), Self-Invested Personal Pensions (SIPPs), and other UK investment vehicles, allowing investors to benefit from potential tax advantages, depending on platform availability and individual circumstances.

Crypto ETPs Empower Financial Advisors and Wealth Managers

These ETPs pave the way for financial advisors and wealth managers to incorporate cryptoassets into diversified portfolios safely and conveniently.

Bitwise provides transparency through weekly balance reports published by an independent administrator, detailing the cryptocurrency holdings backing ETP units in circulation.

Still, investors should be aware of the inherent risks posed by crypto ETPs, including price volatility, liquidity, custody, regulatory uncertainties, and the absence of protections under the Financial Services Compensation Scheme (FSCS) or the Financial Ombudsman Service (FOS).

Alongside Bitwise, 21Shares and WisdomTree have already listed Bitcoin and Ethereum ETPs on the London Stock Exchange, making this a landmark moment for the UK retail crypto market.