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UK Opens Retail Crypto ETPs as U.S. Bitcoin Funds Log Fresh Outflows

The Financial Conduct Authority’s shift broadens regulated access to spot crypto products for British investors, signaling a distribution reset even as global flows remain fragile.

Overview

  • BlackRock, 21Shares, Bitwise and WisdomTree listed physically backed Bitcoin and Ethereum products on the London Stock Exchange after the FCA ended its retail ban, with BlackRock’s shares custodied via Coinbase.
  • U.S. spot Bitcoin ETFs recorded roughly $1.2–$1.23 billion in net outflows last week and a further $40.4 million on Monday, marking a fourth straight day of redemptions led by a $100.7 million exit from BlackRock’s IBIT, per Farside Investors.
  • Bitcoin swung from lows near $108,000 early Tuesday to the low $112,000–$114,000 range later in the day, while Ethereum held near $4,000, underscoring ongoing intraday volatility.
  • On-chain data show more than 45,000 BTC withdrawn from exchanges since early October, pushing exchange reserves to multi‑year lows that can reduce near-term sell pressure.
  • Market nerves remain elevated after a tariff shock linked to about $19 billion in leveraged liquidations, with a delayed U.S. CPI release now set for October 24 and sentiment gauges in the “fear” zone.