11 US Bitcoin ETFs now available on Trading 212 CFD

11 US Bitcoin ETFs are now available as CFDs on Trading 212 Markets. Check them out below:

  • iShares Bitcoin Trust (IBIT)
  • ARK 21Shares Bitcoin ETF (ARKB)
  • WisdomTree Bitcoin Fund (BTCW)
  • Invesco Galaxy Bitcoin ETF (BTCO)
  • Bitwise Bitcoin ETF (BITB)
  • VanEck Bitcoin Trust (HODL)
  • Franklin Bitcoin ETF (EZBC)
  • Fidelity Wise Origin Bitcoin Trust (FBTC)
  • Valkyrie Bitcoin Fund (BRRR)
  • Grayscale Bitcoin Trust (GBTC)
  • Hashdex Bitcoin ETF (DEFI)

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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Do you know if any are likely to be eligible for ISA’s ?

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Sorry for the late response. We can’t offer crypto assets to retail UK clients according to the FCA’s PS20/10 policy. If that changes, we’ll share updates.

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Crypto assets can be sold to UK retail clients, which is why crypto firms can do business here. Crypto-derivatives and crypto-ETNs (like those products sold by XBT Provider) cannot.

Here are the most relevant updated rules from annex B of PS20/10:

22.6.5 R (1) A firm must not:
(a) sell a cryptoasset derivative or a cryptoasset exchange traded note to a retail client; or
(b) distribute a cryptoasset derivative or a cryptoasset exchange traded note to a retail client; or
(c) market a cryptoasset derivative or a cryptoasset exchange traded note if the marketing is addressed to or disseminated in such a way that it is likely to be received by a retail client.

Here are the relevant definitions from annex A:

cryptoasset derivative - a derivative where the underlying is, or includes, an unregulated transferable cryptoasset or an index or derivative relating to an unregulated transferable cryptoasset.

cryptoasset exchange traded note - a debt security:
(a) which is traded on a trading venue or a market operated by a ROIE;
(b) which features no periodic coupon payments; and
(c) whose return tracks the performance of an unregulated transferable cryptoasset, minus applicable fees, whether featuring delta 1, inverse or leveraged exposure or other exposure to the unregulated transferable cryptoasset being tracked.

A reading of PS20/10 doesn’t seem to suggest a prohibition on Bitcoin ETFs.

  • Crypto ETNs, are a debt security, which, by its nature, an ETF is not as these funds simply own the underlying directly.
  • Crypto derivatives, which these ETFs are not. They are not a derivative under the FCA handbook’s definition of derivative, nor does it appear to fit the definition of derivative as defined in article 2 (1)(24)(c) of MiFIR or referred to in paragraphs 4 to 10 of Part 1 of Schedule 2 to the Regulated Activities Order.

If there is a mistake I’ve made in reading this, please let me know. However, it seems clear-cut: PS20/10 does not have language in it that prohibits retail clients from purchasing a cryptocurrency ETF.

In not offering these ETFs, Trading212 is forcing consumers who want this exposure to seek it in sub-optimal ways, such as pseudo-leveraged exposure through MSTR, or even the (frankly, irresponsible to offer to retail ISAs) 3x MSTR ETP like 3LMI.

Offering these ETFs appears to be within the letter of the regulation (at least the one cited as the reason), avoids foreseeable harm by allowing investors who want to take on this risk to express a more ‘pure’ opinion without having to take on even further risk in the form of an entire company, and offering these products is a reasonable step towards allowing customers to pursue their financial objectives.

I hope that this stance is reconsidered.

As a European broker, we can’t offer US ETFs that are not PRIIPS compliant or UCITS certified.

The absence of a Key Investor Information Document (KIID), a crucial requirement under UCITS IV applicable to all UCITS funds, signifies non-compliance with the regulatory framework. The KIID is essential for investors to comprehend the fund’s nature and risks, enabling more informed investment decisions. Hence, we cannot offer ETFs lacking a KIID.

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It’s great to see that Trading 212 Markets has added 11 US Bitcoin ETFs as CFDs to their platform. Having more options for exposure to Bitcoin is always a good thing.
But I think it’s crucial to remember that CFDs come with a high level of risk, and it’s not for the faint-hearted.
If you’re into crypto, like I am, and you’re considering these ETFs, make sure to do your homework and only invest what you can afford to lose. The crypto market can be wild, but it’s also full of opportunities.
If you’re trading crypto, you might want to explore tools like a crypto mixer to add an extra layer of privacy and security to your transactions.