The United Kingdom is taking a big step in its approach to crypto ETFs and related investments. Announced on June 6, the government plans to lift the ban on retail investors buying Bitcoin and Ethereum exchange-traded funds (ETFs). This move by the Financial Conduct Authority (FCA) aims to give more people access to crypto-based financial products. However, industry experts remain cautious about whether this change will significantly grow demand among UK retail investors. FCA’s Proposal to Open Crypto ETFs to Retail Investors The FCA recently proposed allowing retail investors to purchase crypto exchange-traded notes (ETNs). This high-risk investment type tracks the price of assets like Bitcoin and Ethereum. These ETNs will be listed on FCA-recognized exchanges, providing a new avenue for everyday investors to participate in the crypto market. The regulator emphasized that lifting the ban is part of a strategy to balance risk. The regulator wants investors to choose if these risky investments are right for them, instead of banning the product completely. This proposal follows shortly after BlackRock, one of the world’s largest asset managers, registered with the FCA as a crypto asset firm. This move signals growing institutional interest in the UK crypto market. Crypto ETFs See Global Adoption Bitcoin and Ethereum ETFs are becoming more popular worldwide, especially in the United States. U.S.-based spot Ether ETFs have seen inflows for three weeks in a row, and recent data shows that more investors are starting to trust Ethereum-backed products. Also, BlackRock’s iShares Ethereum Trust has gained strong interest from investors. Over two weeks, steady investments totaled more than $800 million. This comes as large firms and institutional investors continue to show growing interest in the financial investment vehicle . Analyst Says Retail Demand Likely to Stay Moderate Following the news, Eric Balchunas, an expert on ETFs at Bloomberg, shared his opinion. He said he does not expect the new rules to increase UK retail demand for crypto ETFs. He explained that European investors, including those in the UK, usually show less interest in crypto and ETFs than Americans. Balchunas noted that while the U.K. has experienced growth in crypto adoption , high fees on crypto products might eventually discourage investors. Nevertheless, some people in the industry feel hopeful. They think the FCA’s decision is important in giving UK investors more ways to invest in crypto. Although the UK crypto rules are becoming clear, it remains to be seen if more investors will take the chance on these new products or remain cautious. The post UK Lifting Crypto ETF Ban May Not Boost Demand, Analyst Says appeared first on TheCoinrise.com .
