After four years in the desert, Bitcoin
Change of negotiated notes (ETN) They are ready to return to London and change could be more significant than many expect.
As of October 8, these products, which allow retail investors to obtain exposure to cryptocurrency without buying them, will be available after being prohibited by the financial behavior authority (FCA) In January 2021. The regulators argued at that time that extreme volatility, susceptibility to fraud and the difficulty of the assessment made them too risky for retail investors.
But the prohibition also left the United Kingdom delayed behind the developments in other places. The funds quoted in the United States have been a resounding success, with more than $ 65 billion that flow to Bitcoin and Ether (Eth) ETFS Since its inception in January last year, they show Sosovalue’s data. European investors also have access to a range of products quoted in the stock market. United Kingdom investors were forced to seek regulated exposure abroad, often resorting to Strategy (Mstr) Stock as proxy.
“The importance of negotiated notes in Bitcoin Exchange that arrive in London is underestimating,” said Charlie Morris, founder of the Bytetree digital asset investment firm, in an interview. “London is the second largest financial center in the world, and many funds have points of contact with London, be it custody, trade, legal or liquidation.”
The prohibition, for example, blocked products that meet UCIT, the European framework for regulated mutual funds and ETFs, from access to cryptography if they wanted to have contact with the financial system based in London.
“This will change. Bitcoin is about to open up to the global fund market, and there will be legal clarity. This could be as important as the United States is launched last year, and possibly more over time.
The investment indicates a recalibration. Great Britain, once an early cryptography center with initiatives at that time, Foreign Minister Rishi Sunak and firms like Coinshares, based in Jersey, are moving to reaffirm relevance. Industry figures such as former Chancellor George Osborne, who is now a coinbase advisor, warned that London runs the risk of being behind if he does not adopt innovation.
“The reversal of the financial behavior authority indicates more than a change of rules. It is a clear sign that the winds are changing in the financial panorama of the United Kingdom, with those responsible for formulating policies that now wish to keep the country relevant in a global market of rapid evolution,” said Bitcoin Og Nicholas Gregory.
Even so, the complex structure of the country’s investment warning industry can mean that the take is slower than defenders, said Peter Lane, CEO of Jacobi Asset Management. The fact that the products are legal does not mean that it will be offered to customers.
“The United Kingdom Advisors Network is highly fragmented, with IFAS [independent financial advisers]Restricted and linked advisors operating with different models, “he said.” It will take time for the companies of these groups to evaluate the implications of the prohibition of Crypt ETN that rise, evaluate the suitability frameworks and develop the necessary diligence processes before they are in a position to consider or recommend these products to customers. “
