Kraken executive urges for introduction of Bitcoin ETF in the United Kingdom
Bivu Das, the managing director of Kraken UK, is advocating for the introduction of a Bitcoin exchange-traded fund (ETF) in the UK. Das expressed his belief during an interview at the Digital Asset Summit in London that Bitcoin ETFs, which are currently restricted in the UK, could provide investors with an opportunity to generate substantial returns. He emphasized that the UK has always aimed to become a crypto hub, and the introduction of Bitcoin ETFs could be a key factor in achieving that goal. Das also warned that if the UK continues to enforce restrictions on Bitcoin ETFs, investors may seek out these products in unregulated jurisdictions, which would not be beneficial for them or the UK as a whole. Bitcoin ETFs allow investors to gain exposure to the value of Bitcoin without directly owning the cryptocurrency. These ETFs trade on traditional stock exchanges, and their value fluctuates based on the price movements of the underlying asset. In 2021, the Financial Conduct Authority (FCA) of the UK banned the retail sale of digital asset derivatives, including exchange-traded products (ETPs) backed by crypto. However, Das argues that the regulatory landscape has changed significantly since then, and Bitcoin ETFs could address some of the regulatory concerns since investors do not directly own the underlying asset. Although the FCA recently approved the launch of crypto exchange-traded notes (ETNs), they are only available to institutional investors and not retail investors, unlike Bitcoin ETFs in the US. This move by the FCA indicates a certain degree of openness, allowing recognized investment exchanges to list these products for trading. However, the regulatory body remains cautious, warning about the significant risks associated with crypto derivatives and ETNs for retail investors. Das highlighted the widespread adoption of Bitcoin ETFs in the US after SEC approval in January, as it legitimized Bitcoin in the crypto market, particularly among institutions. Daniel Seifert, the CEO of Coinbase UK, supports Das’ view on introducing Bitcoin ETFs to the UK, emphasizing the importance of providing consumers with more options. The FCA now faces the challenge of balancing innovation in the crypto space with the protection of retail investors from potential risks. However, with the increasing influx of investments in crypto ETFs, as evidenced by significant net inflows, there is a growing interest in expanding access to crypto investment products.
