Google stock rose on Wednesday, after the UK Financial Conduct Authority (FCA) announced it was looking at an ETF that would allow investors to buy a portion of the company’s stock.
The announcement came as the FCA, which oversees UK-based companies and trusts, issued an advisory to the public about its plans to introduce a cryptocurrency ETF, called RoboStock, that could potentially replace its existing stock exchange-traded fund (ETF) for companies.
The FCA announced it is looking to introduce RoboStock as part of a wider initiative to enable investors to gain access to new investment opportunities by combining trading instruments.
The news comes amid a global economic downturn, which has caused many companies to lay off staff.
RoboStock, which was launched in 2014, is intended to give the ETF holders access to shares that are traded on the company, and would be traded as a standalone fund rather than a part of the ETF.
Robos stock rose 6% on Wednesday after the FCO announced it would consider a proposal to allow investors in RoboStock to buy shares directly.
In a statement, the Fco said it was also examining the “potential benefits and risks” of a crypto-based fund.
“We are currently examining RoboStock for a possible ETF that might offer investors access to its shares and other financial instruments, and the timing of the finalisation of any regulatory proposal is not yet known,” it said.
The Financial Conduct Agency (FCa) has already taken steps to allow RoboStock holders to purchase shares directly, including a scheme that allows them to use the company to buy an ETF.
The RoboStock ETF is expected to be announced by the end of the year, with the FFCa’s proposed regulatory framework likely to be introduced in 2018.
“The UK is at a critical crossroads and this decision will be crucial for the future of our economy and our companies,” FCA head of regulatory affairs, David Bailey, said in a statement.
“While RoboStock shares are trading on the secondary market at less than 2% of the stock price of the rest of the UK stock market, it has grown over the past few years and has now surpassed £7 billion ($10 billion).”
In addition, RoboStock is a leader in the digital currency space with the largest market capitalisation of $13.4 billion ($18.6 billion).
“Robos share price has jumped more than 300% since it was launched.