The UK has taken a decisive step toward mainstream crypto adoption after the Financial Conduct Authority (FCA) lifted its three-year ban on retail trading of crypto exchange-traded products (ETPs).
According to the FCA, eligible ETNs will initially cover Bitcoin and Ethereum, and all trading will occur through authorized UK-based investment exchanges with consumer safeguards in place.
The FCA’s decision arrives at a pivotal moment for the market, as it’s as both a policy breakthrough and a pipeline catalyst for new inflows.
The impact of the FCE’s move could extend beyond access alone.
This means UK investors can now hold crypto ETPs in tax-advantaged accounts such as Individual Savings Accounts (ISAs) and pension schemes.
This could also reshape retail participation, as the UK’s 12 million crypto users would be incentivized to hold Bitcoin in their pension.
However, skepticism about the industry still remains.
According to the firm:
“The HL Investment view is that bitcoin is not an asset class, and we do not think cryptocurrency has characteristics that mean it should be included in portfolios for growth or income and shouldn’t be relied upon to help clients meet their financial goals. Performance assumptions are not possible to analyze for crypto, and unlike other alternative asset classes it has no intrinsic value.”
Despite these concerns, momentum around crypto investment products continues to accelerate globally.
