Funds in the United Kingdom will be able to invest up to 10% in Bitcoin and cryptocurrencies.

• The UK is proposing a 10% Bitcoin allocation for funds.
• Cryptocurrencies are gaining ground in investment products.
• The market is monitoring the new rules for funds and Bitcoin.

The UK's Financial Conduct Authority (FCA) has put out for consultation a proposal that could expand the presence of cryptocurrencies in the traditional financial market. The measure foresees that certain British mutual funds may allocate up to 10% of their assets to investments in Bitcoin and other cryptocurrencies.

The proposal involves so-called open-ended investment funds, structures widely used by retail investors in the country. These vehicles pool resources from thousands of participants and are managed by professional managers, who define the composition of the portfolios according to the rules established by the regulators.

According to the FCA, the 10% limit was set to allow access to the cryptocurrency sector without excessive exposure within portfolios. The intention is to balance the diversification potential offered by digital assets with mechanisms that reduce broader impacts on funds.

Analysts view this initiative as yet another sign of the gradual integration of cryptocurrencies into the traditional financial system. In recent years, products that offer exposure to Bitcoin without the need to directly purchase and store the assets have attracted greater interest from institutional and retail investors.

This movement gained momentum especially after the approval of the first spot Bitcoin ETFs in the United States in January 2024. Since then, several exchange-traded funds have begun to directly track the price of BTC, expanding market access options for investors who prefer to operate through regulated products.

The advancement of these instruments has helped to bring the conventional financial market closer to the cryptocurrency sector. Asset managers, banks, and financial institutions have begun developing solutions that allow exposure to Bitcoin within structures already familiar to investors.

In the United Kingdom, the proposal still needs to go through the regulatory process before any eventual implementation. If approved, the measure could pave the way for a wider participation of cryptocurrencies in funds intended for the British public.

While the market follows the developments of the consultation, Bitcoin was trading near US$61.600 on the afternoon of June 9, remaining the main digital asset used as a benchmark for investment products linked to the sector.