From Morningstar:

The US SEC has approved the sale of exchange-traded funds (ETFs) linked to the spot price of Bitcoin, marking a pivotal move for cryptocurrency investing. UK investors cannot buy the new US Bitcoin ETFs due to differing regulations between countries. The FCA’s ban on sale of exchange-traded notes containing ‘unregulated transferable cryptoassets’ remains, for reasons such as lack of inherent value and volatility.

With the recent approval of the US Bitcoin spot ETFs, UK investors keen on cryptocurrency might feel left out. Yet, EU nations like Switzerland, Germany, and France have a more advanced regulatory framework for crypto adoption, allowing European Bitcoin spot ETFs to list. But cryptocurrency regulation in the UK is a different story, as the FCA grapples with the need for economic growth and protection of consumers.

While it’s difficult to predict when cryptocurrency ETFs will be approved in the UK, the FCA’s shifting regulatory landscape may pave the way for it in the future. The regulator aims to balance protecting consumers with the government’s ambition to make the UK a global hub for cryptoasset technologies. Large investment groups are keen on packaging Bitcoin into tradeable products despite its scandals and price volatility.

Investors cannot buy Bitcoin spot ETFs in the UK yet, but they can gain exposure to Bitcoin and other cryptocurrencies via FCA-regulated trading platforms. Buying cryptocurrency shares from companies involved in or exposed to cryptocurrency mining is another way to invest. However, investing in these high-risk assets carries substantial loss risks, and it’s important for investors to exercise caution.

The approval of the US Bitcoin spot ETFs signifies a direct link to cryptocurrency prices, providing investors with real-time Bitcoin exposure. It is a striking difference from other ETFs that invest in cryptocurrency-related instruments, such as futures, options, or shares of cryptocurrency-related companies. Still, the safety of cryptocurrency investing remains a concern, despite advancements in ETF offerings. Morningstar Investment Management remains cautious on the matter, citing potential dangers for quick profit traders.



Read more: Can I Buy a Bitcoin Spot ETF in The UK?