The much-anticipated release of a Bitcoin exchange-traded fund (ETF) in the United States has left Britain behind, along with other major markets around the world, in maintaining its current block on buyer access to ETF cryptocurrency funds.
American regulators are now following European countries like Sweden and Germany, and nations closer to home, such as Canada, which have given the go ahead for exchange-traded products associated with cryptocurrencies. Many supporters claim ETFs are a safer method for retail investors to successfully access volatile cryptocurrency markets.
Yet access to this kind of fund for British retail investors remains barred by the UK’s Financial Conduct Authority (FCA). It has stated it will not authorise any fund with exposure to cryptocurrency until it is completely satisfied with the underlying market’s integrity.
On repeated occasions, the FCA has voiced its concerns regarding cryptocurrencies. The basis for these concerns is the lack of stable foundation for their value, and the extremely volatile nature of crypto products.
UK consumers seeking sound investment advice in Chester, Manchester and other cities often look to wealth management firms for an unbiased opinion of assets.
The British restrictions on this type of fund draw attention to the ongoing debate on whether the FCA’s reluctance to grant approval to regulated vehicles for cryptocurrency investments will result in retail investors pursuing riskier ways to access these sought-after digital assets.
While the FCA has warned investors repeatedly regarding the risks connected with crypto investments, UK residents are still able to directly buy cryptocurrencies via online exchanges like Gemini and Coinbase.