๐ฌ๐ง UK Opens Path for Retail Investors to Invest in Crypto ETNs
In a historic first, the UK's Financial Conduct Authority (FCA) has lifted its retail ban on crypto Exchange Traded Notes (ETNs), a ban that has been in place since 2020.
For the first time in many years, UK investors are able to gain regulated exposure to Bitcoin and Ethereum via ETNs listed on conventional stock exchanges. These products track the price of crypto and trade like shares- which is an intuitive way in for newcomers without the responsibility of custody coins.
This is being called a โseminal momentโ by industry observers which is able to immerse traditional finance with blockchain assets. The FCA wants to increase investor protections, price discovery and custody, all parts of what might be able to entice any potential participants who are wary of taking a step into the unknown market.
Forecasts for inflows from pension funds, wealth managers and retail traders have led asset managers to believe the UK will soon sit alongside European countries that offer products approved by regulators for crypto investment.
The launch of ETNs is not just a new product launch according to one asset manager based in London. โThis is a signal that crypto is now a serious long-term asset class in Britain".
With institutions gearing up to deploy new ETN products, the UK could potentially benefit from a fresh wave of mainstream adoption which mesh blockchain and the safety of regulated finance.