- The UK FCA lifts ban on crypto ETFs.
- Significant for retail investor access.
- Aligns UK with international standards.
The UK’s Financial Conduct Authority, led by David Geale, has reversed its ban on crypto ETFs initially imposed for consumer protection. The decision follows pressures and aligns with markets like the US and EU. Industry leaders such as Diego Ballon Ossio find this move aligns with the UK’s ambitions to enhance its crypto market status, opening the market to new investors by offering regulated products on exchanges.
The market anticipates increased engagement as major cryptocurrencies like Bitcoin and Ethereum become more accessible. It may spur both retail and institutional involvement, shifting dynamics in the UK’s crypto landscape. Such alignment is expected to boost capital inflow, similar to other jurisdictions where crypto ETPs saw increased liquidity. Laurent Kssis notes it rectifies previous limitations UK investors faced, providing a regulated avenue for investing in crypto products.
Financial market participants like Duncan Moir see significant implications for regulated and safer crypto investment. Retail investors could see more streamlined access to cryptos, bolstering market maturity. Historically, easing such restrictions has enhanced market volumes and liquidity, especially for leading cryptocurrencies. These changes could lead to broader crypto market integration with the traditional financial ecosystem. Industry experts highlight that this could further position the UK as a competitive crypto hub.
“We want to rebalance our approach to risk, and lifting the ban would allow people to make the choice on whether such a high-risk investment is right for them, given they could lose all their money.” — David Geale
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