Summary
The FCA in the UK will allow Recognised Investment Exchanges to create a listed market segment for crypto asset-backed ETNs for professional investors. ETNs are exchange-traded products that track an underlying index or assets.
Key Points
1. The FCA will not object to requests from Recognised Investment Exchanges (RIEs) to build a listed market segment for crypto asset-backed exchange-traded notes (ETNs), indicating increased institutionalization of cryptocurrency markets.
2. The products would be available to professional investors, including investment firms and credit institutions, according to the FCA.
3. ETNs are a type of exchange-traded product that tracks an underlying index or assets, often issued by a bank or investment manager.