Bitcoin ETF UK/EU

📬 Stocks & ETFs requests
1

I decided this topic warranted its own post due to some statements in ‘Stocks & ETFs requests Help’ that need updating.

The post states:

As of 03/06/2025, the Jacobi Bitcoin ETF (BCOIN) (Euronext Amsterdam) is the first Bitcoin ETF in Europe to be approved for both retail and professional investors, following the decision by Guernsey Financial Services Commission (GFSC).

The UK and FCA rules on retail cryptoasset distribution - COBS 22.6.5 states:

(1) A firm or TP 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.

As BCOIN is an ETF, and therefore holds the underlying asset, it would not be classed as a ‘cryptoasset derivative’ or ‘exchange traded note’ as mentioned in the FCA guidance. Jacobi Bitcoin ETF (BCOIN) should be available to both EU and UK retail investors on Trading 212. It is available on Interactive Brokers.

The FCA is also proposing to lift the ban on crypto ETNs, see here.

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Sadly your interpretation of the U.K. guidelines is misplaced. The statements are correct, but perhaps could be clearer to help others like yourself.

It’s the first thing that pops up when doing a quick due diligence search on Google from the company itself

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@RLX what are your thoughts?

You referred to this option as a ‘loophole’ here

While I don’t think it’s exactly a loophole, we now have a Bitcoin ETF approved in Europe. The current FCA rules don’t seem to prohibit adding the ETF to the platform.

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The manager of the ETF confirms it’s not available to UK investors, very weird marketing strategy that one if you think they and the FCA are wrong.

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5

Can you find any FCA regulations that prohibit Bitcoin ETFs specifically rather than the ETNs & derivatives?

6

Yes if you understand the legal documents. In short the FCA consider ETF, ETP and ETNs as comparable products, however the FCA are currently under a period of consultation which in the simplest terms are considering to relax the rules as investors are simply finding other means to buy crypto and we lag behind other countries in means to do so.

*This is not legal advice, I am just aware of some circles that are trying to change them.

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7

The wording in COBS 22.6.5 explicitly prohibits ETNs and derivatives as opposed to physically backed ETFs.

Can you link me to FCA documentation that confirms this?

Also, the image from Google you referenced appears to be an outdated index. A Ctrl+F on the site doesn’t appear to have that same text.

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UCITS legislation doesn’t allow ETFs with single-asset portfolios, that’s why there aren’t EU-domiciled single-asset ETFs in EU space for retail investors.

From a crypto ETP issuer leader:

ETFs are subject to the EU’s Undertakings for Collective Investment in Transferable Securities (UCITS) regulation because they’re typically funds holding diversified portfolios. ETCs aren’t classified as funds, so they can track a single underlying asset like bitcoin, and they don’t fall under the UCITS framework.

So far FCA doesn’t allow crypto indirect vehicles for UK-resident retail investors, such as ETNs and derivatives. There are recent rumors (including FCA proposals) on possible changes on lifting the FCA position on crypto ETNs and derivatives, but are just that, rumors. No official changes until now.

Trading 212, at the moment, only offers crypto ETNs on their EU platform for non-UK residents (and non-Trading 212 UK platform customers).

About the mentioned “Bitcoin ETF”, their site shows the following warning:

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page 6 - Prospectus (Scheme Particulars) As of 03/06/25

→ So according the ETP distributor “Jacobi Asset Management” own information, this ETP isn’t allowed to UK and EU retail residents investors and not allowed to US residents. It is only allowed to Professional Clients.

Morningstar, the world-leader research platform for funds mentions that this ETP is structured as “Legal Structure Collateralized Debt Instrument”, the same structure for the other crypto ETNs. Probably a Morningstar typo or not?

After some Due Diligence, this ETP manager/advisor “Sigma Asset Management (Guernsey) Ltd” lack a bit of transparency to say the least…

After just seeing some information about this ETP and the legal entities related to it, my answer will be just this one:

Caveat Emptor!

→ Bottom-line: No need to update the topic ‘Stocks & ETFs requests Help, due that there aren’t any official modification.

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