Thanks to changes in the UK regulatory framework, Bitwise Asset Management is making four crypto ETPs available to retail investors on the London Stock Exchange (LSE) starting October 21. At the same time, the expense ratio for the Bitwise Core Bitcoin ETP (BTC1) is being reduced to 0.05% for an initial period of six months (and then “until further notice”).
A turning point for retail access in the UK
The FCA’s decision to open retail access to Bitcoin and Ethereum ETPs/ETNs is a game-changer for UK investors. For the first time, exposure to these two digital assets is now possible through exchange-traded products listed on a local Recognized Investment Exchange (the LSE), with the standard safeguards of regulated platforms (suitability/appropriateness checks).
On the tax front, depending on platform availability, these ETPs may be eligible for ISAs, SIPPs, and other investment accounts in the UK. (Tax treatment depends on individual circumstances and is subject to change.)
Bitwise’s Offering on the LSE & Fees
Bitwise now offers, on the LSE’s retail segment, four complementary exposures to Bitcoin and Ethereum, each available in USD and GBP: the Bitwise Core Bitcoin ETP (tickers BTC1 in USD and BTC3 in GBP), the Bitwise Ethereum Staking ETP (ET32 / ET33), the Bitwise Physical Ethereum ETP (BETH / BETI), and the Bitwise Physical Bitcoin ETP (BTCE / BTCF). At the same time, the fees for the Core Bitcoin ETP (BTC1) have been lowered to 0.05% (from 0.20%) for an initial period of six months, and then until further notice—a strong pricing signal that enhances the appeal of simple, competitive “beta” Bitcoin exposure within an institutional product line.
Structure and controls: key takeaways
- Physically backed & fully collateralized: the ETPs hold cryptoassets in institutional custody.
- Independent security: a trustee holds a security for the benefit of investors; the assets remain segregated from the issuer’s balance sheet.
- Transparency: An independent administrator publishes a weekly asset report corresponding to the outstanding shares.
- Regulated access: investment is made through regulated brokers/platforms that apply suitability checks.
Why this is a strategic step
For UK financial advisors and wealth managers, these listings facilitate the operational integration of Bitcoin/Ethereum into portfolios (familiar trading processes, simplified accounting reconciliation, institutional custody). For retail investors, the user experience is similar to other stock market exposures, while retaining the specific characteristics and risks inherent to digital assets.
“We are thrilled to make our Bitcoin and Ethereum ETPs available to a much wider audience in Europe’s largest investment market. Our role is to support investors in this dynamic asset class.”
— Bradley Duke, Managing Director, Head of Europe, Bitwise
About Bitwise
Bitwise is a digital asset manager operating in the United States and Europe, with over $15 billion in client assets. Since 2017, the company has offered a comprehensive range of solutions (ETPs, managed accounts, private funds, hedge fund strategies) to thousands of advisors, family offices, and institutional investors. Strengthened European presence (London, Frankfurt) and a long-standing presence in the United States (San Francisco, New York).
Risk Disclosures
Crypto-asset-backed ETPs involve significant risks, including: price volatility, variable liquidity, custody risks (cybersecurity), regulatory changes, and market risk. Invested capital is at risk, and losses of up to 100% are possible. Past performance is not indicative of future results. Before investing, review the base prospectus and the Final Terms.
➡️ Read the press release
This article is based on a Bitwise press release in English that we have translated. Although we have taken the utmost care, Hubfinance cannot be held responsible for any translation errors. In case of doubt, please refer to the original version.
