CoinShares, WisdomTree, & VanEck Rush To UK As FCA Eases Grip On Crypto ETPs

In a significant gust of developments witnessed across the U.K.’s cryptocurrency landscape, the FCA (Financial Conduct Authority) recently softened its clutch on cryptocurrency exchange-traded products, magnetizing a flurry of crypto ETF providers to the nation. However, there’s a catch, with the U.K. regulator allowing listing requests but, only authorizing ‘professional investors’ the chance to partake in this trading activity.

Although marking a monumental milestone for the country compared to its prior stance on crypto exchange-traded products, industry figures remain critical of the regulatory body’s decision to side with professional investors but imposing a ban on retail investors from buying crypto ETPs.

FCA’s Ruling Echoes Frenzy

Following the FCA’s decision to ‘not object’ appeals from trading floors such as the London Stock Exchange and Cboe UK to list crypto-backed exchange-traded products running alongside Bitcoin or Ethereum, renowned crypto ETF providers rushed in to offer services in the U.K. However, only financial institutions such as investment firms, credit institutions, pension funds, and insurance companies remain poised to participate in buying crypto ETPs.

Among the flurry of crypto ETF providers that rushed into the UK, CoinShares, WisdomTree, and VanEck appear to be capitalizing on the opportunity. “We look forward to engaging with the LSE about the new listing opportunities and to better understand their requirements and how our products might fit,” stated CoinShares’ head of product, Townsend Lansing.

Meanwhile, WisdomTree stated the LSE potentially offers a more convenient access point for UK-based professional investors eyeing exposure to crypto ETPs rather than overseas exchanges. “We are currently engaging with the FCA and LSE to explore the opportunity more thoroughly,” the ETF provider further annexed.

Whereas VanEck’s crypto product manager, Menno Martens, claimed that the FCA’s ruling came as’ indeed a positive development and that it was looking into potentially listing the firm’s crypto ETNs in the UK.’

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UK’s Ban On Retail Investors’ Purchasing Of Crypto ETPs Faces Backlash

The FCA proclaimed earlier that it continued to view crypto ETNs and crypto derivatives as ill-suited for retail consumers due to the harm they bring. However, retail investors are free to buy cryptocurrencies directly on exchanges, contrasting the UK regulator’s abovementioned stance.

CoinShares’ Lansing added it was disheartening to witness the FCA’s disparity orbiting retail investors in the UK, whereas, in other parts of the United States and Europe, investors can leverage regulated listed products within the digital assets space.

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