๐๐ ๐๐ข๐๐ญ๐ฌ ๐๐ซ๐ฒ๐ฉ๐ญ๐จ ๐๐๐ ๐๐๐ง, ๐๐ฎ๐ญ ๐๐๐ฆ๐๐ง๐ ๐๐๐ฒ ๐๐๐ฆ๐๐ข๐ง ๐๐๐๐ค, ๐๐ง๐๐ฅ๐ฒ๐ฌ๐ญ ๐๐๐ฒ๐ฌ
๐ฌ๐ง The UKโs Financial Conduct Authority (FCA) has officially proposed lifting its ban on Bitcoin and Ethereum ETFs for retail investors. While this is seen as a progressive move, Bloomberg ETF analyst Eric Balchunas believes it may not spark much excitement or inflows.
๐ FCA Opens the Door to Retail Crypto Exposure
In a June 6 update, the FCA announced plans to allow retail access to crypto ETNs, reversing its earlier stance that classified these products as too risky.
๐ฃ๏ธ FCA exec David Geale said the move aims to "rebalance risk" and give people the right to chooseโeven if it means risking total loss.
The change follows BlackRockโs registration as a crypto asset firm in the UK, signaling regulatory warming toward crypto products.
๐ But Analysts See Tepid Interest Ahead
Despite the headline, analysts are skeptical about a demand boom:
๐ Balchunas commented on X:
โUK lifting ban on crypto ETFs... Not sure it will move the needle much... Europeans in general are โmehโ on both ETFs and crypto.โ
He also noted higher ETF fees in the UK compared to the US as another barrier to growth.
๐ Meanwhile, in the US, BlackRockโs Ethereum ETF (ETHA) has recorded 14 straight days of inflows, totaling over $800 millionโthe longest streak this year, per ETF Store president Nate Geraci.
๐ง Expert Take: Symbolic Win, But Not a Catalyst (Yet)
While the move reflects the UKโs growing crypto ambition, especially after comments from law firm Clifford Chance, the real-world retail impact may be minimal unless investor attitudes shift.
โ Itโs a step forward for access, but not yet a demand revolutionโespecially without competitive fee structures or deeper education around ETFs in the UK.