US Spot Bitcoin ETF Approved, UK Unlikely to Follow Suit
It’s a historic moment for the cryptocurrency market as the US Securities and Exchange Commission (SEC) finally approved eleven spot Bitcoin ETFs . Crypto enthusiasts around the world are looking on excitedly. Unfortunately, a similar product for UK investors is highly unlikely to be approved, according to one financial advisor.
This latest approval in the US for the first-ever spot crypto ETFs throws open the doors for institutional and retail investors. It seems the UK will lag on the crypto ETF action.
The UK is the second-largest economy in Europe and currently the sixth-largest in the world, following the US, China, Germany, Japan and India. Where does the UK stand when it comes to crypto products? Well, it’s no secret the UK has been increasingly tough when it comes to crypto.
“I am personally doubtful that the UK’s Financial Conduct Authority will authorise Bitcoin or other cryptocurrency ETFs to be made accessible to UK retail investors any time soon,” said Jason Hollands, Managing Director at investing platform Bestinvest.
In January 2021, the FCA implemented a ban on the sale of derivatives and exchange-traded products. The FCA said it considers the products to be ill-suited for retail consumers due to the potential harm they pose.
Hollands notes that Bitcoin enthusiasts among the UK’s estimated nine million self-directed investors who use online platforms and apps to manage their investments through ISA, SIPP and general investment accounts –might be in for a wait to have the same choice as their US counterparts.
Over the years, the FCA has repeatedly flagged its concerns about the extreme volatility of crypto assets, the high risk of losses and the difficulties retail investors face in
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