Britain’s Asset Managers Want Blockchain Traded Funds. 

Investment Association proposes issuing digital tokens to investors instead of shares or funds

Britain’s Asset Managers Want Blockchain Traded Funds. 

 

Investment managers in the UK are pushing for the approval of blockchain traded funds , which would enable investors to gain exposure to digital assets through blockchain technology. This move is aimed at providing investors with more access to digital assets while maintaining regulatory oversight and investor protection.

The trade body representing the UK’s asset management industry, the Investment Association, which manages close to $12 trillion in assets for clients worldwide, has asked the UK government for approval of blockchain-traded funds.

According to the association, blockchain ledger will be significantly cost-saving for investors and improve efficiency in trading by issuing digital tokens instead of traditional shares and funds.

The group has also proposed the creation of a task force to study how blockchain technology could accelerate the creation of new products and services, as well as allowing investors to add cryptocurrencies to their holdings.

“Greater innovation will boost the overall competitiveness of the UK funds industry and improve the cost, efficiency and quality of the investment experience,” says CEO of the Investment Association, Chris Cummings.

In Conclusion ,British investment managers are urging regulators to approve blockchain-traded funds (BTFs), which are investment vehicles that allow investors to gain exposure to digital assets through blockchain technology. They argue that BTFs would provide investors with greater access to digital assets while maintaining the regulatory oversight and investor protections offered by traditional financial markets. The investment managers believe that the approval of BTFs would not only benefit investors but also help to further establish the UK as a leading hub for financial innovation.

If approved by the Financial Conduct Authority (FCA), Blockchain-traded funds could be rolled out in the UK by the second quarter of 2023.

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