Should the FCA allow crypto ETP for retail trade?

ETPs could make cryptocurrency safer for everyone, so it’s odd that the regulator won’t let retail traders use them

CGI image of bitcoin cryptocurrency
(Image credit: Getty Images)

In January this year, cryptocurrencies took a further step into the mainstream when the US Securities and Exchange Commission (SEC) approved the first cryptocurrency exchange-traded products (ETPs). There are now around two dozen crypto ETPs available to US investors, and the biggest, iShares Bitcoin Trust, has around $20 billion of assets under management. 

Crypto ETPs will make it easier to trade this volatile market, since ETPs can be bought and sold through a broker just like a regular share. However, these instruments are not yet available to UK retail traders, who cannot buy most US-listed ETPs as they don’t comply with UK regulations and are not tradeable through UK brokers that offer US stocks

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Ben Judge

Ben studied modern languages at London University's Queen Mary College. After dabbling unhappily in local government finance for a while, he went to work for The Scotsman newspaper in Edinburgh. The launch of the paper's website, scotsman.com, in the early years of the dotcom craze, saw Ben move online to manage the Business and Motors channels before becoming deputy editor with responsibility for all aspects of online production for The Scotsman, Scotland on Sunday and the Edinburgh Evening News websites, along with the papers' Edinburgh Festivals website.

Ben joined MoneyWeek as website editor in 2008, just as the Great Financial Crisis was brewing. He has written extensively for the website and magazine, with a particular emphasis on alternative finance and fintech, including blockchain and bitcoin. 

As an early adopter of bitcoin, Ben bought when the price was under $200, but went on to spend it all on foolish fripperies.