Bitcoin ETFs are reshaping investment strategies in the U.S. bitcoin market, while the UK takes a different approach by greenlighting crypto-linked exchange-traded notes (ETNs) for the first time.
Despite falling into the same broader category as ETFs, ETNs differ significantly in their structure. ETNs are derivative instruments that don’t directly hold Bitcoin, in contrast to ETFs, which do. Consequently, ETFs exert a more substantial impact on market prices by directly affecting the buying and selling demand of the actual asset.
Tim Bevan, CEO of ETC Group, a major provider of crypto asset ETPs in Europe with offerings in Germany and France, weighed in on the developments.
He expressed his approval of the Financial Conduct Authority (FCA)’s decision to allow the London Stock Exchange (LSE) to introduce a segment for crypto ETPs. However, he noted his disappointment at the continued exclusion of retail investors from these securities on regulated markets, despite them being able to open direct crypto accounts without similar restrictions.
Bevan argues that if UK regulations allowed retail investors to invest in crypto ETPs through regulated markets, it would align the UK with much of Europe and offer retail investors the security benefits of established exchanges. Such a move, he believes, would bolster the UK’s claim as a fintech global leader.
At the time of this writing, Bitcoin price is $72,070.48, a change of 0.56% over the past 24 hours as of 11:59 a.m., after reaching a peak of $72,800 the previous day.
