Bivu Das, the Managing Director at Kraken UK, recently commented on the need to introduce Bitcoin Exchange Traded Funds (ETFs) for investors in the United Kingdom.
Speaking at the Digital Asset Summit in London, Das maintained that amid global revolutionary changes revolving around digital assets' ecosystem and the need to convert the UK into a crypto hub, adopting Bitcoin ETFs in the nation remains crucial for growth.
Das remarked, "The UK has always said it wants to be a crypto hub. And this is one of the fundamentals to potentially meeting that definition."
Implications Of Depriving UK Investors Access To Bitcoin ETFs
The restriction on products like Bitcoin ETFs in the United Kingdom has existed since 2021. However, Das does not see the need for such constraints any longer. According to him, the main reason behind the decision, which relates to retail investor protection, seems curtailed to certain degrees, considering the evolution in the digital assets field over the years.
Furthermore, the Managing Director picked on the potential of Bitcoin ETFs, rewarding traders with massive profits that most UK investors cannot enjoy, adding that it will force them to seek other means of accessing Bitcoin.
The desperation to make sumptuous gains will force most investors to shift their attention towards unregulated platforms, casting the UK in a manner opposite to its intention of becoming a leading crypto hub.
Coinbase’s UK CEO Corroborates Das Claims
Daniel Seigert, Coinbase's United Kingdom Chief Executive Officer (CEO), also waded into the debate involving Bitcoin ETF adoption in the country when he gave his take on the said topic in a recent interview.
The CEO noted that introducing Bitcoin ETFs will be a step in the right direction for UK investors, as it would expose them to a wide range of investment options.
Crypto Exchange-Traded Notes (ETNs) In The UK Versus Bitcoin ETFs In The US
The United Kingdom is on the verge of introducing Crypto Exchange Traded Notes (ETNs) into its markets. However, unlike Bitcoin ETFs, which are open to everyone in the United States, only institutional investors will have access to trade with ETNs.
Das believes that the discrepancy between the US and the UK, as described above, has continued to pose significant hindrances to crypto expansion in the UK.
Going further, the Managing Director cited how the US has succeeded in potentiating the credibility of Bitcoin and other cryptocurrencies in its broader market after the US Securities and Exchange Commission's (SEC) approval of Bitcoin ETFs in January 2024.
The above would not have been possible if the US had made the ETF only available for institutional investors while neglecting retail traders.
It is left to see how events unfold in the future. For now, the United Kingdom regulatory authorities might need to be flexible in their approach to attain a sustainable cryptocurrency expansion in its markets.