Summary
The FCA announced they will not object to some bitcoin-backed securities being listed in the UK, but it is not a clear path for UK retail customers to invest in bitcoin funds. The FCA’s stance on crypto assets is more nuanced than it may seem, and they are under pressure to reconsider their ban on crypto derivatives for retail investors. The SEC in the US has recently allowed spot bitcoin ETFs to be sold to both institutional and retail investors, showing a more pragmatic approach to crypto assets. The EU is also seeing movement in the crypto space, with similar products being permitted for sale to professional investors. The FCA’s position on crypto assets is still uncertain, but there is potential for them to review their stance in the future.
Key Points
1. The FCA announced it would not object to some bitcoin-backed securities being listed in the UK, but this does not necessarily mean UK retail customers can invest in bitcoin funds.
2. The SEC in the US has allowed spot bitcoin ETFs to be sold to both institutional and retail investors, reflecting a more pragmatic view of crypto products in other jurisdictions.
3. The FCA’s ban on the sale of crypto derivatives to retail consumers remains in place, showing that the FCA may not be completely open to reviewing its crypto position despite recent developments in the industry.