3rd August 2025 > > Spot SOL ETFs & the UK.

tl;dr

A bit of TA fun, ‘cos that is all it is. SOL is moving mainstream, which will be nice. The UK disappoints us all again.

Market Snap 

Market Wrap

Now nearly $10k below the ATH set just three weeks ago, there are some panicky voices claiming doom and gloom for the crypto markets, not least Arthur Hayes it seems. Zoom out just a little and we are 4% higher over the last month and an impressive 85% higher for the last twelve months.

On Friday, a near record $800k was withdrawn from the spot BTC ETFs. No doubt some of the hot money will also exit tomorrow and beyond, suggesting a short period of price weakness is the most likely path for next week.

Curious Cryptos’ Commentary – Technical analysis

Please remember that TA is mere snake oil, but just for fun, simply because I would be delighted if it happens in this, rather than my slightly longer, timescale:

Curious Cryptos’ Commentary – Solano ETF incoming

The SEC has accepted amendments to seven S-1 registration statements for spot SOL ETFs. It is likely that staking is a core part of these updates, and will be accepted by the new enlightened leadership of the SEC. There is still some work to do, but be in doubt, investors will soon be able to buy spot SOL ETFs:

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For years now, SOL has undoubtedly been a core element of the alt portfolio of all seasoned crypto investors.

These developments can only help to max out our mutual bags.

Curious Cryptos’ Commentary – The UK

The UK’s political and regulatory attitude towards cryptos has always been antagonistic, despite the example set first by the EU with the implementation of MiCA (Markets in Crypto Assets) and by the US with its welcoming embrace of cryptos since the change of administration.

There are some crypto-related ETFs which UK investors can buy, but these are backed by crypto companies, and not actual cryptos. The FCA does not allow UK investors to buy any US ETFs, as our documentation requirements are different, and we ignore the fact that the US has the most stringent securities laws in the world, with the most draconian penalties for breaching those rules. The FCA used to be a well-respected regulator globally, but under the leadership (if one could call it that) of Andrew Bailey, before his incompetence was rewarded with a promotion to becoming Governor of the Bank of England, it massively expanded its headcount and refocussed from being an effective regulator based upon principles, to a huge box-ticking exercise. Make no mistake, the incumbent, legacy banks were delighted with Bailey’s tenure, for he colluded with them to create huge barriers to entry from potential new competitors in the form of daunting compliance requirements that add no value to the banking process.

In its war against cryptos, encouraged by politicians of all stripes, the FCA also banned any crypto promotion. It is true that the infamous advert displayed on London buses (“When you see BTC on the side of a bus, you know it is time to buy”) was egregious, and timed perfectly to encourage retail to invest at the local cycle top. But as a blanket ban, it also stopped many other forms of helpful promotion. Many of the centralised cryptocurrency exchanges had learning tutorials, completion of which resulted in awards of small amounts of cryptos. Revolut did the same. Fold ran a promotion paying out BTC. I built a small stash from these initiatives (I love free cryptos) that is now worth a few thousand pounds. As the FCA’s remit is to protect UK investors, I am not sure how preventing someone from earning free cryptos lives up to that ambition.

On the plus side, the FCA did ban all derivative products for cryptos, a very rare example of sensible decision making by the regulator.

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The FCA also bans UK investors from buying single asset ETFs, which is a ridiculous rule. However, it does allow investors to buy single asset ETNs. There are some who are confused by the difference between ETFs and ETNs (the F stands for Fund, the N for Note).

ETFs look a lot like normal stocks. They are physically backed by the actual asset or assets. They are freely tradeable, and can be exchanged for cash, or the underlying asset itself. ETNs are nothing like ETFs. They are bonds issued by a financial institution with a promise to pay a dividend stream or redemption amount at maturity based upon the performance of a specific asset. There is no requirement to hold the underlying as collateral, though that is frequently the case. By and large, ETNs are listed on small exchanges such as the Luxembourg Stock Exchange, they tend to be highly illiquid, with large bid-offers. In many ways, ETNs are simply a means of getting around regulatory restrictions that do not need to be in place.

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The FCA has announced that UK investors will now be able to buy cETNs (crypto Exchange Traded Notes):

https://content.govdelivery.com/accounts/UKFCA/bulletins/3ec033c

Some people are getting excited about this development. For example, Charlie Morris said this on X:

“UK FCA ban on retail trading in Bitcoin ETFs lifted on 8 October. It’s going to be big.”

I’ve got news for you Charlie. It makes no difference at all.

This announcement is no more than a feeble attempt at providing some political cover by suggesting to the uninformed that the UK is wanting to embrace the crypto revolution. Nothing could be further from the truth.