CoinShares, WisdomTree and VanEck Rush to UK as FCA Eases Control of Crypto ETPs
Following the significant developments witnessed in the UK’s cryptocurrency landscape, the FCA (Financial Conduct Authority) has recently eased its grip on cryptocurrency exchange-traded products, attracting an influx of crypto ETF providers to the country. However, there is a problem with the UK regulator allowing listing requests but only giving ‘professional investors’ the chance to engage in this trading activity.
Despite being a monumental milestone for the country compared to its priority stance towards crypto exchange-traded products, industry figures continue to criticize the regulator’s decision to side with professional investors and ban retail investors from purchasing crypto ETPs.
FCA’s Decision Echoes the Frenzy
Following the FCA’s decision to ‘no objection’ to calls from trading venues such as the London Stock Exchange and Cboe UK to list crypto-backed exchange-traded products that work alongside Bitcoin or Ethereum, renowned crypto ETF providers have moved to offer services in the UK. Only financial institutions such as investment firms, credit institutions, pension funds and insurance companies are ready to participate in the purchase of crypto ETP.
Among the crypto ETF providers flocking to the UK, CoinShares, WisdomTree and VanEck appear to be capitalizing on this opportunity. “We look forward to engaging with the LSE about new listing opportunities and better understanding their requirements and how our products might fit,” said Townsend Lansing, head of product at CoinShares.
Meanwhile, WisdomTree noted that the LSE potentially offers a more convenient access point for UK-based professional investors considering turning to crypto ETPs rather than overseas exchanges. “We are currently working with the FCA and LSE to investigate the opportunity more fully,” the ETF provider added.
VanEck’s crypto product manager, Menno Martens, said the FCA’s decision was a ‘really positive development’ and that the firm was exploring potentially listing its crypto ETNs in the UK.
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UK’s Ban on Retail Investors from Purchasing Crypto ETPs Faces Backlash
The FCA has previously stated that it continues to view crypto ETNs and crypto derivatives as unsuitable for retail consumers due to the harm they bring. However, retail investors are free to buy cryptocurrencies directly from exchanges, contrary to the UK regulator’s aforementioned stance.
CoinShares’ Lansing added that it is disheartening to witness the FCA’s disparity among retail investors in the United Kingdom, whereas investors in the United States and other parts of Europe can benefit from regulated listed products in the digital assets space.
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