Today the UK’s Financial Conduct Authority (FCA) announced it would allow stock exchanges to list exchange traded notes backed by cryptoassets (cETNs). However, the regulator will restrict buyers to institutional investors. It continues to believe that cETNs and crypto derivatives are inappropriate for retail investors.
Many institutional investors who may want exposure to crypto don’t want to be involved in deciding the best custody route. Institutions can buy and sell ETNs just like any other security without requiring technical adaptations.
The regulator believes sufficient time has passed for exchanges to be able to assess whether they have the risk appetite for crypto securities.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
