Bitwise has announced it will lower the fees for its Bitwise Core Bitcoin ETP (BTC1, ISIN: DE000A4AER62) to 5 basis points (0.05 per cent), as it will admit the product and three other crypto Exchange Traded Products (ETPs) on the Retail Segment of the London Stock Exchange (LSE) on October 21st.
The firm writes that these listings represent the first time UK retail investors can gain exposure to bitcoin and Ethereum through ETPs listed on a UK Recognised Investment Exchange (RIE), coinciding with the Financial Conduct Authority’s (FCA) decision to lift its restrictions on retail access to crypto ETPs.
The launch of the four products gives retail investors access to the four bitcoin and Ethereum ETPs which Bitwise listed on the LSE in April. They are the Bitwise Core Bitcoin ETP (BTC1, ISIN: DE000A4AER62), the Bitwise Physical Bitcoin ETP (BTCE, ISIN: DE000A27Z304), the Bitwise Ethereum Staking ETP (ET32, ISIN: DE000A3G90G9) and the Bitwise Physical Ethereum ETP (ZETH, ISIN: DE000A3GMKD7). Under the FCA’s guidance, UK retail investors can currently access crypto ETPs referencing bitcoin and Ethereum only, and only when traded on FCA-recognised exchanges (for example, the London Stock Exchange).
Bitwise will reduce the Total Expense Ratio (TER) of BTC1 to 0.05 per cent from 0.20% per cent effective as of today, for six months, and then until further notice, writing that this makes it the most cost-efficient member of the company’s suite of institutional-grade crypto ETPs, to the benefit of both new and existing investors in this rapidly evolving market.
Bradley Duke, Managing Director, Head of Europe at Bitwise, says: “We are excited to make Bitwise Bitcoin and Ethereum ETPs available to a much wider group of investors in Europe’s largest investment market through this launch on the London Stock Exchange. At Bitwise, we see it as our role to accompany investors on their journey in this dynamic asset class. UK investors can now gain exposure to bitcoin or Ethereum through products that are fully backed and available via their brokers and tax-advantaged accounts.”
Bitwise crypto ETPs, often referred to as crypto ETCs or crypto ETNs depending on the listing segment of each stock exchange, are physically backed, MiFID II–compliant instruments traded on regulated stock exchanges. They aim provide investors with exchange-traded exposure to digital assets such as bitcoin and Ethereum. While the ETPs are listed on regulated exchanges, the underlying cryptoassets are not themselves regulated by the FCA, and investors are not protected by the Financial Services Compensation Scheme (FSCS) or Financial Ombudsman Service (FOS).
Equally important, access is provided via participating regulated brokers and investment platforms, which are required to carry out standard investor appropriateness and suitability checks before trading.
Bitwise writes that its ETPs are fully collateralised, with the underlying cryptoassets held in institutional custody. An independent trustee holds a security interest over the assets to the benefit of investors. In the event of issuer insolvency, these assets remain segregated from the issuer’s own balance sheet. While traditional unsecured ETNs are debt instruments that carry issuer counterparty risk, Bitwise’s physically backed crypto ETNs hold underlying digital assets in segregated custody, a structure similar in concept to physical gold ETCs. Nonetheless, crypto ETNs involve distinct risks, including digital-asset price volatility, custody complexities, and evolving regulation, which investors should carefully consider
Bitwise writes that it also provides transparency on reserves: an independent administrator publishes a weekly balance report of cryptocurrency holdings backing ETP units in circulation. The firm writes that ETPs also enable financial advisers and wealth managers to offer clients exposure to digital assets within a regulated, exchange-traded format making it easier to integrate crypto into diversified portfolios.
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