Kraken UK’s Managing Director, Beivou Das, expressed at the Digital Asset Summit in London his desire to see spot Bitcoin ETFs in the UK, as reported by The Block.
According to him, the world has changed significantly since the FCA banned the sale of cryptocurrency-based derivatives and exchange-traded notes (ETNs) to retail traders in January 2021. Many investor risks have been minimized, Das noted.
The Kraken UK executive described Bitcoin ETFs as an intriguing product with potentially high returns. The lack of access for British investors drives them to unregulated platforms.
“The UK has always said it wants to be a cryptocurrency hub. And this is one of the foundational steps towards that goal,” stated Das.
Daniel Seifert, CEO of Coinbase UK, agrees. According to him, “more choice for customers is always good.”
In the second quarter of 2024, the London Stock Exchange will begin accepting applications for listing Bitcoin and Ethereum-based ETNs. However, the instrument will only be available to institutional investors, according to the previous FCA decision.
As of early February, Europe dominated the global market for Ethereum exchange-traded products with a share of about 65% and assets under management totaling $4.6 billion, according to CoinGecko.
However, experts found that just a month after the January launch of spot Bitcoin ETFs in the US, the country captured 83.3% of the global segment volume of $41.74 billion.
The SEC is reviewing several applications for the approval of similar Ether-based funds. Despite discussions between potential product issuers and the regulator, optimism for their imminent approval in May is waning.
Analysts at Chainalysis have assessed the UK’s crypto economy as the largest in Europe and the third largest in the world, with an annual transaction volume of $252 billion.