Way Clear for UK ETFs
CryptoUK responds to FCA's Announcement
CryptoUK, the trade body representing the digital asset sector in the UK, has today made the following statement following the FCA’s announcement that it will not object to investment exchanges following the US-lead in creating a new segment for Bitcoin-backed exchange traded funds.
CryptoUK welcomes the Financial Conduct Authority’s announcement today that it “will not object to requests from Recognised Investment Exchanges (RIEs) to create a UK listed market segment for cryptoasset-backed Exchange Traded Notes (cETNs)”. We advocated for this type of change, in line with our support for proportionate and measured regulation that is consistent and provides a level playing field for all types of innovation.
The response from the marketplace has been immediate - “the London Stock Exchange confirms it will accept applications for the admission of Bitcoin and Ethereum crypto ETNs in the second quarter of 2024 and in accordance with the details contained in the crypto ETN factsheet available on the Exchange's website.”
CryptoUK is at the forefront of engagement with UK policymakers to ensure that appropriate financial products, such as cETNs, are available to all types of investors. With that in mind, we will continue to advocate for a reconsideration of the existing bans on access to appropriate financial investments for retail investors. Whilst we fully support a robust suite of investor protections, we want to highlight concerns around whether these bans are proportionate and in line with policy for similar investments that do not involve cryptoassets.
Today’s announcement marks an important milestone in realising the UK government’s vision to become a “global hub for cryptoasset technologies” that supports a variety of innovations, including blockchain and distributed ledger technology. It also reminds us of the need for further public-private sector collaboration with domestic and global policymakers. CryptoUK looks forward to continuing its role in these engagements and advocacy initiatives.