UK to Lift Ban on Bitcoin Exchange Traded Notes Starting October 8
Bitcoin exchange-traded notes (ETNs) will return to London on Oct. 8 after a ban by the Financial Conduct Authority (FCA) since January 2021 due to concerns over volatility and fraud.
- U.K. investors have sought regulated exposure abroad, particularly through U.S. ETFs which have seen $65 billion in inflows.
- The return of ETNs may enhance London's status as a financial center and allow better access for funds engaging with crypto.
- The change could provide legal clarity and stimulate sustained demand for bitcoin.
- Industry experts note that the U.K. must adapt to remain competitive globally in the crypto space.
- Slower adoption is expected due to the fragmented investment-advice landscape in the U.K.
Overall, the lifting of the ban marks a significant shift in the U.K.'s approach to cryptocurrency investment products.