Bitwise Asset Management established a stronger footprint in the UK market through its launch of four crypto exchange-traded products (ETPs) that operate on the London Stock Exchange (LSE). The exchange-traded products exist to serve institutional buyers who require Bitcoin and Ethereum through a regulated framework. Regulations in the UK prevent retail investors from taking part in investments.
Secure and regulated Crypto exposure
In particular, the Bitwise Core Bitcoin ETP and the Bitwise Physical Bitcoin ETP join the list of new products that offer physical Bitcoin settlement functions. Under this ETP, institutions gain Bitcoin exposure without requiring them to handle private keys or manage crypto wallets. The Bitwise Physical Bitcoin ETP provides investors with exposure to Bitcoin while fulfilling the same requirements of security and transparency.
Bitwise launched the Physical Ethereum ETP to provide regulated ownership opportunities of Ethereum for investors who focus on Ethereum-based investments. Consequently, the Bitwise Ethereum Staking ETP combines Ethereum investment with additional staking reward opportunities. The solution permits institutions to generate passive income through legal protocols and regulatory norms.
The four ETPs comply with every criterion set by the UK Financial Conduct Authority (FCA). To comply with UK FCA standards, the funds must have physical asset backing and non-leveraged structures and work with AML-compliant custodial services. Therefore, professional and institutional investors represent the only authorized group that can currently access these ETPs.
Strategic growth in the European market
The UK expansion by Bitwise occurred after the acquisition of London-based ETC Group. The acquisition allowed Bitwise to increase its European market share through the absorption of over $1 billion worth of crypto Exchange-Traded Funds assets under management. There is rising institutional interest in regulated digital product offerings, so the launch of the LSE-listed ETPs meets this market need.
European markets keep developing their crypto investment opportunities. Relative to crypto ownership, institutions select compliant investment tools that bear better compliance standards. Thus, the new offerings from Bitwise support this market evolution, which creates a connection between conventional financial systems and blockchain engineering. Further regulatory changes in the UK and the EU will potentially lead to opportunities for retail investors. These new listings represent the principal advancement for regulated markets in implementing institutional adoption of cryptocurrencies.
