Recently, the US announced the launch of a bitcoin ETF, a long-anticipated and awaited asset that many traders are excited about.
As many of the major markets around the world are adopting bitcoin ETFs, the United Kingdom seems to be left out.
Traders in the country do not have access to exchange-traded crypto funds, while many of them have an interest in it.
The regulatory agencies of the US followed the steps taken by countries such as Canada and EU member nations such as Germany and Sweden and gave the exchange-traded crypto assets the green light.
Many ETF supporters claim that these assets are a lot safer for retail crypto investors when compared to other crypto assets, due to the huge market volatility and the risks that they can bring.
However, the main regulatory authority of the United Kingdom, the Financial Conduct Authority, FCA, continues to block access to the crypto ETFs.
The regulatory authority said that it would not support the authorization of the ETFs until the regulator is satisfied with the integrity of the underlying market, leaving the crypto ETF enthusiasts out of the market.
The Financial Conduct Authority, on numerous occasions, said that they had numerous concerns about cryptocurrencies.
One of the biggest things that the regulatory authority is concerned about is the extreme volatility of the asset as well as the lack of a solid basis for their value.
FCA’s Stance
The regulatory agency believes that until these issues are not resolved, and it is not confident in these, there won’t be considerations for any support for the crypto ETFs.
While the UK regulator is not allowing locals to have access to the crypto ETF market, many other jurisdictions around the world are reporting billions of dollars of investment attracted by the market.
Many market experts believe that due to the reluctance of the regulatory framework from the UK’s regulatory agency is affecting the market in a negative manner, leaving investors no other choice but to look for riskier avenues to access the popular digital assets.
The head of the digital assets at WisdomTree, Jason Guthrie, commented on the ongoing events in the market and the reluctance of the UK regulators to not allow trading of the crypto ETFs.
He said that the UK has long been slower than most of the other jurisdictions around the world from an investment product perspective.
WisdomTree is a large crypto exchange, which offers crypto products to traders in Europe.
The company has already applied to launch its services in the US for further growth.
This happens while the crypto trading popularity in the UK is showing signs of increasing popularity.
There are numerous people in the country very actively trading cryptocurrencies.
Cryptocurrencies are very popular in the UK
The popularity of digital assets has skyrocketed over the past few years due to the ongoing events in the crypto trading market.
Numerous success stories and the performance of the crypto assets this year have further supported the popularity of the crypto trading market in the UK.
In addition, the market has become very easy to access for traders in the country.
Today, there are numerous crypto exchanges that offer traders their services.
These exchanges are very easy to use and offer traders to invest in cryptocurrencies directly from their phones.
What’s more, automated trading is making the market even easier than it has ever been.
Traders can use automated trading robots to invest in cryptocurrencies in a matter of minutes as they are able to market analysis much quicker.
Traders can easily find the best bitcoin bot strategy that fits your needs well and you can start making profits in the market very quickly.
The trading robots are able to not only analyse the market but can also trade cryptocurrencies for you, which makes trading a lot easier and more rewarding for traders.
While the market is not regulated in the country, there still are many people who are looking for opportunities to trade cryptocurrencies in the UK.
This is especially true for the younger, tech-savvy generation of the country.
Local traders are looking for other ways
Due to the current situation in the country and the stance of the financial regulator towards the crypto ETFs, local traders who are heavily interested in the market have no other choice but to be looking for other ways to invest in the crypto ETF assets.
The strict approach of the regulator does not seem to be getting in the way of the enthusiasm that local traders have for the asset.
The regulatory body of the country has recently warned traders of the risks of the crypto investments and banned digital asset derivatives, however, UK residents are still able to directly buy and sell cryptocurrencies using online crypto exchanges.
It was recently reported that as much as 4% of the UK’s adult population, which is over 2.3 million people, already own cryptocurrencies.
Many crypto traders are calling for regulations in the market to ensure the higher safety and security of their funds.
However, as of now, the regulatory agency has not announced any specific plans to regulate the market.
This is one of the main reasons why so many traders are looking for other ways to trade crypto ETFs.
There are almost 50 exchange-traded products that are linked to crypto assets offered around the world.
This equals as much as $14 billion combined.
But, despite such numbers and increased interest from the retail traders of the country, FCA remains to oppose the idea of letting UK traders join the globally increasing, popular market.
Many of the defenders of the crypto funds say that the regulatory agency of the country should understand that ETFs are very much safer than other ways of accessing crypto markets.
Still, there are no signs of the UK regulator changing its mind anytime soon.
