What caught my eye this week.
With Bitcoin trading above $120,000 and US regulators moving in a noticeably crypto-friendly direction, digital assets now feel poised to enter the mainstream institutional arena.
That shift brings both opportunity and risk — and I say that as someone who remains broadly sceptical.
My view over the past decade has moved from guarded caution to a measured acceptance of Bitcoin in particular. I remain unconvinced about the thousands of other fleeting tokens that appear and disappear. 1
Even so, it’s worrying to see the UK lagging behind the US again, despite having led fintech innovation in previous years.
Some of the notable developments across the Atlantic this week include:
- BlackRock’s Bitcoin ETF became the fastest fund ever to reach $80bn in assets
- US crypto companies are pursuing banking licences, according to reports
- Polymarket is the latest crypto-adjacent platform to have a legal probe dropped
- Grayscale has filed paperwork to pursue a public listing
- Circle Internet now has a valuation north of $50bn, having surged since its IPO
The market certainly looks frothy in places — people said the same when Bitcoin first topped $10,000 in 2017 and again during the NFT mania of 2021 — yet the momentum keeps building into 2025.
Slowly does it on British Bitcoin ETFs
By contrast, the UK’s progress feels slow.
The FCA announced in June a proposal to lift the ban on crypto exchange-traded products for retail investors. That change would allow investors to hold Bitcoin ETFs in ISAs and SIPPs instead of relying on imperfect alternatives or overseas proxies.
But the FCA has not yet set a timetable. Some observers expect action only in 2026.
That raises the question: what more must we learn after 18 months of US ETFs holding well over $100bn? If the UK is going to permit retail access, it would be better to move decisively rather than dragging its feet.
I appreciate regulation must be cautious, and many readers will find crypto unpalatable. Still, regulation that is timely and clear would be preferable to a prolonged limbo.
They boom, we bust
Meanwhile, the UK has seen painful failures. Formerly promising crypto platform Ziglu entered administration after administrators uncovered a roughly £2m shortfall.
Cointelegraph reports that thousands of savers now face potential losses after Ziglu’s collapse.
Thousands of savers face the grim prospect of losing their investments after administrators uncovered a two million pounds shortfall at Ziglu, a British cryptocurrency fintech that collapsed earlier this year.
I was among many small investors who put money into Ziglu during its crowdfund, when the company still inspired genuine hope. Ziglu was founded by Mark Hipperson, a co-founder of Starling Bank, and enjoyed rapid customer growth until the crypto downturn and the collapse of a planned sale to Robinhood.
The collapse is a reminder that fintech and crypto carries real downside for retail backers, even when the story looks promising at the time.
By contrast, US peers have reached valuations that dwarf most UK outcomes. Robinhood now sits on an enormous valuation, while UK challengers have seen mixed exits — Freetrade was sold to IG Group for £160m earlier this year.
A reach for the stars
It’s unsurprising that UK fintech winners are eyeing US listings. Several firms, including Starling, have discussed US IPOs. The prospect of big flotations abroad underlines how much of the best growth is being realised outside UK public markets.
Don’t mistake all UK challengers for high-risk startups. Monzo recently raised funds at roughly a $5bn valuation and is reportedly planning a £6bn IPO. Revolut, with tens of millions of customers, has raised at valuations near $48bn. These businesses are substantial and increasingly global.
But the cumulative effect — more UK-born companies listing or being taken private in the US — deepens the sense of lost opportunity for British capital markets. That lack of dynamism will have long-term consequences.
Despite my pessimism about the institutional picture, individuals still have choices. The FTSE 100 is at record highs, and for those of us finding value domestically, a measured overweight in UK holdings can be justified by lower valuations and potential takeover interest.
My new side, side-hustle: a London property newsletter
On a different note, I’ve launched a new hobby project: a London-focused property newsletter called Propegator on Substack.
Propegator is essentially a Weekend Reading for houses — focused on London listings and the quirks of the market there. I’ll mix practical commentary on the wider UK housing problems with a celebration of notable and attractive properties. This is more property enthusiasm than frugal housing advice.
After years of following the market and finally buying my own flat, I admit to being something of a property addict. The newsletter is a creative side project that lets me indulge that interest and share interesting listings and stories.
Like and subscribe
About a quarter of readers live in and around London, so I’m flagging the newsletter here. It’s not intended to replace the main blog; it’s a compact, property-focused companion for those who enjoy the sector. If that sounds like you, I hope you subscribe and enjoy it.
Have a great weekend.
From Monevator
Is Revolut good for investing? – Monevator
Discretionary trusts: cautious optimism – Monevator [Mogul members]
From the archive-ator: Keep it simple, stupid – Monevator
News
Inflation jumps to 3.6% on fuel and food price pressures – Sky
Savers to be targeted with offers to buy shares under Reeves’ new plans – BBC
Number of UK job hunters rises at fastest rate since pandemic – Guardian
Homes for sale at seven year high as landlords flood the market – This Is Money
New ‘buy now, pay later’ affordability checks to cover even the smallest loans – Guardian
Renters could end up £340,000 worse off than homeowners over 30 years – This Is Money
The 60/40 portfolio: a 150-year stress test [US but relevant] – Morningstar
Products and services
Strangely, the best fixed-rate mortgage deals have gotten cheaper… – This Is Money
…even as Best Buy fixed-rate savings deals rates edge up – Which
Six tricks to turbocharge your Boots Advantage card points – This Is Money
Get up to £200 cashback when you open an Interactive Investor SIPP. Terms and fees apply – Interactive Investor
How to get £175 by switching bank account to Barclays – Be Clever With Your Cash
Key features of the Renter’s Rights Bill [Advertorial, but worth a read] – Standard
Get up to £1,500 cashback when you transfer your cash and/or investments to Charles Stanley Direct through this affiliate link. Terms apply – Charles Stanley
Anger over Santander charging for ‘forever free’ business accounts – Guardian
How to save money at Waitrose – Be Clever With Your Cash
Comment and opinion
What Reeves’ Mansion House speech means for savers and homebuyers – Which
How large are global financial assets? [Free to read, infographic] – FT
The death of the Amex lounge – Of Dollars and Data
Let’s be honest, £50,000 is no longer a decent salary… – Standard
Gen Z trades stocks the same way it gambles – Sherwood
Stock and ETF tokenisation mini-special
Top advisor predicts tokenised stocks will replace ETFs by 2030… – Investment News
…or maybe not. Innovations take time to earn staying power – Humble Dollar
Naughty corner: Active antics
Value: that was then, this is now [PDF] – GMO
Bad bet: on picking active funds – Morningstar
And finally…
“Even when the playing field is level, the institutions are weak opponents and, as it happens, there are several areas where the small private investor actually has an advantage.”
– Jim Slater, Beyond the Zulu Principle
Like these links? Subscribe to get them every Saturday. Note this article includes affiliate links.
- For what it’s worth, like most pundits I think Ethereum and perhaps Solana have a future, and a few stablecoins look like they are going to make it. I have zero conviction about – and presently little interest in – everything else.[↩]