CoinShares has warned UK lawmakers that the country is falling behind global competitors in the race to regulate Bitcoin exchange-traded funds, telling the Treasury Select Committee that Britain’s continued ban is pushing innovation and capital formation offshore.
In evidence submitted to Parliament following a hearing on digital assets, the firm argued that the UK is now out of step with the United States and Europe, where spot Bitcoin ETFs have already attracted more than $48 billion in inflows since their approval in 2024. CoinShares said global holdings in digital-asset ETPs have reached $210 billion, with the United States accounting for more than ninety per cent of recent inflows.
The submission also pointed to institutional reporting trends, noting that disclosures filed with the U.S. Securities and Exchange Commission show positions in Bitcoin ETFs held by large financial institutions, including JPMorgan Chase and Wells Fargo.
CoinShares told lawmakers that rising institutional participation, falling volatility and stronger custody standards demonstrate that these products can operate safely within existing regulatory frameworks.
The paper argued that the UK’s stance risks undermining London’s competitiveness as a financial centre.
It said European markets including Switzerland, Germany and the Netherlands already host more than $20 billion in crypto-asset ETPs under rules similar to those used for commodity-based funds such as gold.
CoinShares also addressed environmental concerns, citing research suggesting a 58 per cent improvement in Bitcoin mining efficiency over the past four years, with an estimated 57 per cent of energy used in mining now coming from renewable sources.
The firm said emissions intensity has roughly halved since 2021, while flexible mining facilities have contributed to grid-balancing programmes in regions such as Texas. It added that mining infrastructure is increasingly being repurposed for high-performance AI workloads, reducing marginal energy costs and supporting regional digital-economy activity.
The firm recommended that the UK permit regulated Bitcoin ETPs under Financial Conduct Authority oversight, supported by enhanced disclosure rules, clear custody standards and ESG-aligned reporting requirements.
It said such a pathway would align the UK with international practice and allow domestic issuers to compete with foreign products that have already gained traction.
CoinShares further stated that the question facing policymakers is no longer whether digital-asset products can be regulated safely, but whether the UK is prepared to participate in a market that is rapidly institutionalising across the United States and Europe.
