British fund managers are committed to the approval of blockchain-traded funds

The British asset management industry is urging the government to found a new fund class with blockchain technology and shows how financial companies use the architecture based on the cryptom market.

The Investment Association, the trade organization, which represents the British asset management industry, which manages almost 10 trillion pounds for customers worldwide, will ask the government and the city's regulatory authority to "work with speed" on Thursday, to approved blockchain-trade funds, the digital brands are spent on investors instead of classical stocks or Fund shares.

According to the Investment Association, considerable cost savings for end investors could be achieved by using the digital main books known as blockchain in order to advance several efficiency improvements in the existing tedious processes when buying and selling investment funds.

The group will also suggest the establishment of a new task force to examine how the distributed Ledger technology accelerates the development of new products and services and more investors could enable their portfolios to adapt their portfolios to private companies and cryptocurrencies.

Chris Cummings, Chief Executive of the Investment Association, said that it was crucial that political decision -makers, supervisory authorities and participants in the investment industry work together to "drive innovations without delay".

"More innovation will increase the general competitiveness of the British fund industry and improve the costs, efficiency and quality of the investment experience," said Cummings.

Blockchain-traded fund, also known as tokenized or on-chain funds, could be introduced at the end of the second quarter of 2023 if the official approval was accelerated by the Financial Conduct Authority.

The Franklin Templeton, based in California, put on the first US investment fund in April 2021 to use blockchain to process transactions and to recording the equity ownership.

Fundadmintichain, a financial technology group, is currently working with the London stock exchange and four global asset managers to develop live token funds for the British market.

"Asset managers have realized that there is potential to generate alpha [market beating returns] about tokenization. Tokenized funds can offer more transparency, immediate processing, improvements in data and analyzes, which will contribute to a more efficient system for investors, but we need regulatory support to ensure that the UK compared to other legal orders It remains competitive, ”said Brian McNulty, CEO from Fundadminchain.

The Investment Association also asks the FCA to check whether traditional investment funds should be allowed to own cryptocurrencies such as Bitcoin and other digital assets.

Every new assessment of the suitability of crypto assets for admission to funds that are sold to private investors would require a comprehensive consultation of the FCA, a lengthy process that would delay the official approval.

The total value of the cryptocurrency market has broken down by more than $ 2 trillion since the record high of November 2021 because global investors have left speculative financial investments. The collapse alerted the regulatory authorities and led to several demands for stricter rules to protect investors.

"The recent volatility underlines how important it is to define the 'traffic rules' for cryptoassets that will help to reduce the risk of damage for consumers," said Cummings.

In a speech in April, John Glen, the then city minister and economic secretary of the Ministry of Finance, said the government wanted to "eliminate false incentives" that prevented the British fund managers from keeping crypto systems in their portfolios.

"By [The UK] as a hospitable place for crypto, we can put investments, create new jobs and create a wave of groundbreaking new products and services," said Glen.