Crypto ETNs for Professional Investors
The UK’s Financial Conduct Authority (FCA) has given the green light for crypto-based exchange-traded notes (ETNs) to be sold to professional investors. These ETNs track the performance of underlying crypto assets like Bitcoin (BTC).
Retail Investors Not Allowed
The FCA has ruled that retail investors will not be allowed to buy crypto ETNs due to the high risks involved. The regulator believes that professional investors have the experience and understanding to assess these risks.
Bitcoin’s Record-Breaking Rally
The approval of crypto ETNs comes at a time when Bitcoin is reaching new all-time highs. The cryptocurrency is currently trading at $72,314, fueling interest in the digital asset market.
FCA’s Warning
Despite the approval, the FCA reminds investors that cryptoassets are highly risky and largely unregulated. It advises potential investors to be prepared to lose all their money.
Regulatory Framework
The FCA is working with the government and industry to develop a comprehensive regulatory framework for cryptoassets in the UK. The aim is to set international standards and protect investors.
