Britainโs Financial Watchdog Allows Crypto-Backed Exchange-Traded Notes for Professional Investors
Britainโs financial watchdog, the Financial Conduct Authority (FCA), announced on Monday that it will permit recognised investment exchanges to launch crypto-backed exchange-traded notes (ETNs). However, these products will only be available for professional investors, such as investment firms and credit institutions authorised to operate in financial markets. The FCA also warned that crypto ETNs pose harm to retail investors.
FCAโs Approval for Crypto-Backed ETNs
The Financial Conduct Authority (FCA) in the UK has given its approval for recognised investment exchanges to launch crypto-backed exchange-traded notes (ETNs).
Available Only for Professional Investors
- The FCA stated that these crypto-backed ETNs would be limited to professional investors, including investment firms and credit institutions authorised to operate in financial markets.
- Retail investors will not have access to these products.
Warning About Harm to Retail Investors
While allowing the launch of crypto-backed ETNs, the FCA also cautioned about the potential harm they pose to retail investors.
Crypto ETNs and Derivatives Unsuitable for Retail Consumers
The Financial Conduct Authority (FCA) has deemed crypto ETNs and derivatives as unsuitable for retail consumers due to the risks involved.
Ban on Crypto ETNs and Derivatives for Retail Consumers Remains
The FCA reiterated its ban on crypto ETNs and derivatives for retail consumers. These products are considered ill-suited for retail consumers due to the harm they can cause.
Reminder of High Risks Associated with Cryptoassets
The FCA continues to remind people that cryptoassets are high risk and largely unregulated. Investors should be prepared to lose all their money when investing in cryptocurrencies.
London Stock Exchange to Accept Applications for Bitcoin and Ether ETNs
The London Stock Exchange announced separately that it will accept applications for the admission of bitcoin and ether ETNs from the second quarter of this year.
Expanding Cryptocurrency Offerings on the London Stock Exchange
- The London Stock Exchange is expanding its cryptocurrency offerings by accepting applications for bitcoin and ether ETNs.
- This move reflects the growing interest and demand for digital assets among investors.
๐ฅ Hot Take: FCA Allows Crypto-Backed ETNs for Professionals, But Warns About Risks ๐ฅ
The Financial Conduct Authority (FCA) has made a significant decision by allowing recognised investment exchanges to launch crypto-backed exchange-traded notes (ETNs). While this move opens up opportunities for professional investors, such as investment firms and credit institutions, the FCA has also emphasized the potential harm these products pose to retail investors. It reiterates the ban on crypto ETNs and derivatives for retail consumers, reminding everyone about the high risks associated with cryptoassets. The London Stock Exchangeโs decision to accept applications for bitcoin and ether ETNs further highlights the growing interest in cryptocurrencies. As the cryptocurrency market continues to evolve, it is crucial for investors to carefully consider the risks involved and make informed decisions.
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