Kraken UK Head Advocates for Bitcoin ETFs in the UK

Kraken UK Managing Director Bivu Das has emphasized the importance of introducing Bitcoin exchange-traded funds (ETFs) to the United Kingdom, citing shifts in the global financial landscape and the need for increased access to crypto investment products. 

In an interview at the Digital Asset Summit in London, Das highlighted the evolution of regulatory concerns since the UK’s restrictions on such products in 2021, suggesting that the current environment may be more conducive to ETFs.

On the other hand, Kraken has been on a path to expansion, recently attaining Virtual Asset Service Provider (VASP) registration from the Dutch Central Bank (DNB). 

Kraken UK Head Talks BTC ETFs

The Kraken UK head pointed out that concerns regarding retail investor protection, a key consideration for regulators, could be mitigated in ETFs as investors wouldn’t directly own the underlying assets.

This change in perspective opens up avenues for introducing ETFs, providing UK investors with access to products that offer potentially attractive returns, thus reducing the need to seek exposure through unregulated channels.

Expanding Investment Options

Highlighting the significance of ETFs in bolstering the UK’s position as a crypto hub, Das emphasized that expanding investment options aligns with the nation’s aspirations in the digital asset space.

Accessible ETFs would not only cater to retail investors but also contribute to legitimizing Bitcoin in institutional circles, a move crucial for the broader acceptance of cryptocurrencies.

Despite recent approvals for crypto exchange-traded notes in the UK, which are limited to institutional investors, there remains a gap in accessibility for retail investors. Unlike the US, where Bitcoin ETFs are available to anyone, the absence of such options in the UK restricts retail participation in this burgeoning asset class.

Coinbase UK CEO Expresses a Similar Opinion

Echoing the Kraken UK head’s sentiments, Coinbase UK CEO Daniel Seifert expressed support for introducing Bitcoin ETFs in the UK, underscoring the importance of offering consumers a wider range of investment choices. Seifert’s endorsement aligns with the growing consensus among industry leaders regarding the benefits of expanding crypto investment avenues.

Kraken vs. the SEC

In November 2023, Kraken was sued by the SEC while being accused of illegally operating as a securities exchange because it failed to register with the appropriate authority. On the other hand, the leading exchange sought to dismiss the lawsuit, claiming that the move from the regulator sets a “dangerous precedent” for the agency’s remit.

As reported earlier by TheCoinRise, attorneys general from major US states collectively argued that the SEC’s lawsuit against Kraken exceeds the regulator’s authority.