BTC ETF on UK ISA

Hi

Are we getting any BTC ETF on UK ISA tomorrow?

Anything listed? And why some other miners it’s only limited buy?

Unlikely they made us sell a few months ago

Have you found any UCITS compliant BTC ETF that could be allowed in an ISA?

I suspect the answer to both questions is the same.

That’s why I am asking “any” btc etf …

Hey, everyone :wave:

The Bitcoin ETF is approved by the SEC and will be available for US-domicile investors only for the time being. If there is an equivalent listing in the future, which can be offered on our app, we will add it :pray:

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Thank you :pray: @Momchil.G

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Would they come under the FCA ban on crypto derivatives in place in the UK?

Yep. That’s PS19/22. Pretty much bans crypto backed funds to UK retail

Well…

There is a loophole:

To address these harms, the FCA has made rules banning the sale, marketing and distribution to all retail consumers of any derivatives (ie contract for difference – CFDs, options and futures) and ETNs that reference unregulated transferable cryptoassets by firms acting in, or from, the UK.

As stated above, it doesn’t include ETFs per si.
But according to EU legislation, (e.g. UCITS), funds and ETFs shouldn’t invest their portfolios in a single asset. There are concentration weights restrictions for that kind of vehicles, for example, no single asset should have more than 10% of the fund’s assets. That why ETFs issuers (asset management firms) choose the ETNs as the vehicle for crypto/commodities/currencies ETPs. And this kind of vehicle is included in the FCA retail ban.

And US-domiciled ETFs aren’t allowed to EU retail investors.

The million dollar question is:

Will FCA continue to enforce EU legislation (e.g. UCITS)?
If not:

  • US-domiciled funds/ETFs can be offered in UK
  • And single asset and over concentrated portfolios funds/ETFs can be offered in UK.

But it’s necessary that the US crypto ETFs should be considered outside from the original FCA retail ban, as they aren’t derivatives and ETNs.

I suspect I know the response to this… but here goes any way:

Even IF you straddle the UCITs/PS19/22/UK vs EU/concentration ratios as mentioned above you hit another (stupid) hurdle: KIIDs and KIDs. Without these documents no ETF can be sold to UK or European retail.

FCA bans British people from investing into US ETFs, crypto-derivatives, cryptos.

They want people to stay stupid and keep paying 0.5% Stamp Duty Tax for UK stocks.

Why can’t they leave it to the people to choose what they should invest into?

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Equity proxies for BTC ETF and can be held by UK investors ETC Group Digital Assets and Blockchain Equity UCITS ETF (ticker: KOIN) & Grayscale Future of Finance UCITS ETF (ticker: GFOF)

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