During the Digital Asset Summit in London, Kraken UK managing director Bivu Das expressed his support for the introduction of Bitcoin exchange-traded funds (ETFs) in the UK. Das believes that Bitcoin ETFs, currently restricted in the UK, could provide investors with an opportunity to earn favorable returns.

According to Das, the UK has aspirations to become a crypto hub, and allowing Bitcoin ETFs could be a significant step in that direction. By enabling regulated access to crypto exposure, the UK could attract more investors and institutional interest in Bitcoin.

Bitcoin ETFs offer investors a way to gain exposure to Bitcoin’s value without directly owning the cryptocurrency. These ETFs trade on traditional stock exchanges, and their value fluctuates based on Bitcoin’s price movements.

In 2021, the UK’s Financial Conduct Authority (FCA) banned the retail sale of digital asset derivatives, including crypto-backed exchange-traded products. However, Das believes that the regulatory landscape has evolved since then, and Bitcoin ETFs could address regulatory concerns by not requiring investors to own the underlying asset.

While the FCA recently approved the launch of crypto exchange-traded notes (ETNs) for institutional investors, Bitcoin ETFs are still not available to retail investors in the UK. This contrasts with the US, where Bitcoin ETFs are accessible to all investors.

Despite the cautious approach taken by the FCA, there is a growing interest in expanding access to crypto investment products. The recent approval of crypto ETNs for institutional investors signals a potential shift towards greater openness to crypto-related financial products in the UK.

By following the example set by the US, where Bitcoin ETFs have gained significant adoption and legitimacy, the UK could pave the way for broader institutional acceptance of Bitcoin. Coinbase UK CEO Daniel Seifert also supports the idea of introducing Bitcoin ETFs in the UK, emphasizing the importance of providing consumers with more investment options.

As the FCA navigates the delicate balance between fostering innovation in the crypto space and protecting retail investors, the potential introduction of Bitcoin ETFs in the UK could mark a significant milestone in the country’s crypto journey.

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