UK Regulator Softens Stance on Crypto ETFs, But Only for Professional Investors

The Financial Conduct Authority (FCA) in the UK has relaxed its grip on cryptocurrency exchange-traded products, allowing a number of crypto ETF providers to offer services in the country. However, the FCA has only authorised professional investors to participate in this trading activity, which has been criticised by industry figures who believe retail investors should also be allowed to buy crypto ETPs. CoinShares, WisdomTree and VanEck are among the crypto ETF providers that have rushed into the UK to capitalise on the opportunity, but only financial institutions such as investment firms, credit institutions, pension funds and insurance companies will be able to participate. The FCA's decision has been seen as a positive development, but has also faced backlash due to the ban on retail investors purchasing crypto ETPs.