The world of digital asset investing has taken another significant step forward with Fidelity International announcing the launch of its Bitcoin exchange-traded product (ETP) on the London Stock Exchange. This milestone marks a growing trend of institutional adoption and regulatory acceptance of cryptocurrency-based financial instruments in traditional markets.
The newly listed product, known as the Fidelity Physical Bitcoin ETP (stock code: FBTC), is now available exclusively to professional investors in the UK. This move follows a pivotal regulatory shift by the UK Financial Conduct Authority (FCA), which in late May 2025 approved the listing of crypto-backed exchange-traded notes (ETNs) for professional investors. The decision has paved the way for major financial firms like 21Shares, WisdomTree, and Global X to introduce similar offerings in the British market.
A Regulated Pathway to Bitcoin Exposure
Stefan Kuhn, Head of ETF and Index Distribution at Fidelity International for Europe, emphasized the importance of this development:
“The FCA’s authorization for professional investors to access crypto-backed ETNs is a positive step forward. It reflects increasing acceptance and demand for digital assets, delivered through secure and regulated exchanges. The Fidelity Physical Bitcoin ETP offers UK-based professional investors an institutional-grade solution to enter the market in a familiar, straightforward, and secure manner.”
This ETP is fully backed by physical Bitcoin and designed to track the underlying price movements of the leading cryptocurrency. Its structure provides investors with direct exposure without the complexities of self-custody or navigating unregulated platforms.
Launched initially in February 2022, the product first became available on Germany’s Zurich Securities Exchange (ZSE) and SIX Swiss Exchange, gaining traction among European institutional investors before expanding into London.
Institutional-Grade Infrastructure and Security
One of the key differentiators of the Fidelity Physical Bitcoin ETP is its robust infrastructure. The digital assets backing the product are securely held by Fidelity Digital Assets, a division specifically established to provide custody, execution, and infrastructure services for institutional clients in the crypto space.
This integration ensures that investor holdings benefit from enterprise-level security protocols, including cold storage solutions, multi-signature wallets, and comprehensive insurance coverage—features that are critical for risk-averse institutions.
By leveraging Fidelity’s long-standing reputation in asset management and financial services, the ETP bridges the gap between traditional finance (TradFi) and decentralized digital assets, offering a trusted gateway for professional investors seeking Bitcoin exposure within a compliant framework.
Cost Efficiency Meets Market Competitiveness
In February 2024, Fidelity made a strategic adjustment to enhance the product’s appeal: it reduced the ongoing fee rate of its Bitcoin ETP from 0.75% to 0.35% annually. This reduction aligns the product more closely with competitive offerings in the European ETP landscape and lowers the barrier for long-term investment.
Ongoing fees—also known as expense ratios—represent the annual cost of managing an investment vehicle such as a fund or ETP. Even small reductions can significantly impact net returns over time, especially in high-volatility assets like Bitcoin.
👉 See how lower fees are reshaping access to Bitcoin investment products.
Why This Matters for the UK Financial Market
The introduction of a physically backed Bitcoin ETP on one of the world’s oldest and most respected stock exchanges signals a maturing relationship between regulators, financial institutions, and digital assets.
For professional investors—including hedge funds, family offices, pension schemes, and asset managers—the FCA’s updated stance removes previous uncertainties about compliance and counterparty risk. With clearer guidelines in place, more institutions are likely to allocate capital to digital assets through regulated vehicles rather than over-the-counter (OTC) desks or offshore platforms.
Moreover, this development may serve as a precursor to broader retail access in the future, should regulatory confidence continue to grow and market stability be maintained.
Core Keywords Driving Digital Asset Adoption
The rise of regulated Bitcoin products hinges on several core concepts:
- Bitcoin ETP
- London Stock Exchange
- FCA regulation
- institutional adoption
- digital asset custody
- professional investors
- Fidelity Digital Assets
- crypto-backed ETN
These keywords not only reflect current market dynamics but also align with growing search intent around secure, compliant ways to invest in cryptocurrency through traditional financial channels.
Frequently Asked Questions (FAQ)
Q: Who can invest in the Fidelity Physical Bitcoin ETP?
A: Currently, the product is available only to professional investors in the UK, as defined by FCA standards. Retail investors are not eligible at this time.
Q: Is the ETP backed by actual Bitcoin?
A: Yes. The Fidelity Physical Bitcoin ETP is 100% backed by physical Bitcoin held in secure custody by Fidelity Digital Assets.
Q: How does this differ from a Bitcoin ETF?
A: While similar in function, an ETP (Exchange-Traded Product) may have different legal structures than an ETF (Exchange-Traded Fund). In Europe, many crypto products are structured as ETNs (Exchange-Traded Notes), which are debt securities linked to an underlying asset.
Q: What are the fees associated with the ETP?
A: The ongoing fee rate is 0.35% per year, reduced from 0.75% in February 2024 to improve competitiveness.
Q: Where else is this product listed?
A: Prior to its London listing, the ETP was launched on the Zurich Securities Exchange and SIX Swiss Exchange in February 2022.
Q: Does Fidelity Digital Assets offer services beyond custody?
A: Yes. Fidelity Digital Assets provides a full suite of institutional services, including trading execution, settlement, and infrastructure support for digital assets.
Looking Ahead: The Future of Crypto in Traditional Finance
The listing of Fidelity’s Bitcoin ETP on the London Stock Exchange represents more than just a new investment option—it symbolizes a broader shift toward mainstream acceptance of digital assets. As regulatory frameworks evolve and investor demand grows, we can expect further innovation in product design, including potential expansions to Ethereum and other compliant digital assets.
With trusted names like Fidelity leading the charge, backed by strong custody solutions and transparent fee structures, the path toward widespread institutional adoption of cryptocurrencies is becoming clearer than ever.