The UK Financial Conduct Authority’s (FCA) latest decision on the listing of crypto backed exchange traded notes (ETNs) has sparked criticism from the industry. This move has signaled a slight shift in the authority’s approach toward ETPs. However, the regulator had decided to allow a specific category of investors to jump in.
UK set to boost crypto?
According to a report, platforms like the London Stock Exchange and Cboe UK are ready to list ETNs. Meanwhile, these investment products will be only available to institutional investors which has led key industry figures to argue that retail investors are unfairly excluded.
The FCA’s decision makes it stand in line with other regulators like the US, Australia, Brazil, Canada and continental Europe. These jurisdictions had opened gates for ETPs, meanwhile, the UK fell short in order to provide this opportunity for individual investors.
It’s important to note that this mega decision comes after ETFs got big approval from the US Securities and Exchange Commission (SEC). A major interest in the crypto market could be seen after the green light.
As we take a look at Bitcoin (BTC), Its price has jumped by more than 60% in the last 60 days. BTC price trading around $42K in anticipation of a regulatory approval before January 12 saw its price hit a new All Time High (ATH) of $73,750 on March 14. This shows that billions of dollars came into the crypto market just because of ETFs.
Bitcoin price is up by around 5% in the last 24 hours. BTC is trading at an average price of $68,268, at the press time. Its 24 hour trading volume stands at $42 billion.
Are retail investors safe?
The report mentioned that several key crypto players are gearing up to enter the market despite the UK regulator’s cautious approach. It added that companies like CoinShares, WisdomTree, VanEck, and ETC group showed their interest in listing their crypto products in the country. However, they hope the ban on retail investors will be lifted soon to broaden access to these products.
It is being highlighted that the FCA had maintained its stance on crypto ETNs and derivatives holding major risks to retail consumers. It is just because of crypto assets’ volatile and largely unregulated nature.
However, retail investors in the UK are free to purchase cryptos directly on exchanges. This exposes them to additional risks which include theft and the need for digital wallets and private keys.
