UK Embraces Crypto: Bitcoin Reaches Record High of $72,000
The Financial Conduct Authority has announced that it will allow exchanges to list cryptocurrency-linked exchange-traded products, a move that has caused Bitcoin to reach a new record high of over $72,000. This decision comes after the FCA previously banned the sale of crypto-linked ETNs and derivatives to retail investors in 2020 due to their high-risk nature.
Under the new rules, exchanges must ensure that they have sufficient control measures in place to ensure organized trading and protect professional investors. They will also be required to meet all U.K. listing requirements, including issuing prospectuses and ongoing disclosures.
London Stock Exchange has welcomed the news, with plans to accept applications for the admission of bitcoin and ether ETNs in the second quarter of this year. However, the FCA has made it clear that only professional investors will be able to purchase these ETNs, citing the high risks associated with retail investors.
Despite this approval, the FCA continues to warn the public about the risks of investing in cryptoassets, stating that they are largely unregulated and investors must be prepared to lose all their money. This belief is also reflected in the FCA's ongoing ban on the sale of crypto-linked ETNs and derivatives to retail investors.
The decision from the U.K. regulators comes after their U.S. counterparts gave the green light for ETFs from major firms like BlackRock and Fidelity, which are now being traded. While an ETF is a fund that holds assets, an ETN is an unsecured debt security issued by a bank.
Bitcoin enthusiasts believe that this approval will open the door for increased institutional investment in cryptocurrencies, leading to a positive impact on prices. This potential growth is also reflected in the recent approval of spot bitcoin exchange-traded funds in the U.S...
Read full article on Cointacted.com
https://bit.ly/4cg0LhV
