Rolling coverage of the latest economic and financial news
- FCA: You might lose all your money in cryptoassets
- Five reasons to be careful
- Bitcoin falls back to $34,000, after hitting $40,000 last week
- Still up 300% in 12 months
- FTSE 100 drops as tougher Covid-19 restrictions loom
Having issued its warning today, the City watchdog may soon get its teeth into companies pushing crypto investments, predicts Ian Mason, head of UK Financial Services Regulatory Team at law firm Gowling WLG.
“The FCA has repeatedly warned consumers about investing in cryptoassets, and some consumers may have been encouraged to invest as a result of the recent increase in price of Bitcoin.
We expect the FCA to clamp down on firms offering investments in cryptoassets which have not complied with the increased regulation of these products”.
There’s been growing speculation of late that US regulators could allow bitcoin exchange-traded funds, or ETFs, to be set up - giving investors an easier way to get exposure to the crypto coin.
The SEC has rejected previous proposals, but the increased interest from Wall Street could provoke a change of heart, some suggest.
U.S. approval of a Bitcoin exchange-traded fund could weigh on the digital coin’s price in the short term, according to JPMorgan Chase & Co.
That’s because competition from such a vehicle could spark outflows from the Grayscale Bitcoin Trust, the world’s largest traded cryptocurrency fund. The ETF would erode the Grayscale trust’s effective monopoly, sparking outflows and a slide in its premium to net asset value -- which in turn could hurt Bitcoin’s price, strategists led by Nikolaos Panigirtzoglou wrote in a note.
Crypto update:#Bitcoin 35375.96 -7.04%#Ether 1114.77 -12.29%#Ripple (XRP) 0.2934 -6.92%#BitcoinCash 506.61 -16.05%#EOS 2.7328 -11.43%#Stellar 0.2557 -11.22%#Litecoin 145.42 -14.11%#NEO 23.649 -4.08%#Crypto 10 Index 7965 -10.36%#BTC #ETH #XRP #BCH #XLM #LTC https://t.co/TLswCfDm7YContinue reading...