Summary
FCA supports crypto ETNs for professional investors in the UK, but industry experts are calling for retail access. London Stock Exchange to accept physically-backed crypto ETN proposals. Retail investors excluded from trading crypto ETNs on regulated markets, but there is pressure for the FCA to reconsider. SEC approved spot bitcoin ETFs in US, while FCA takes a cautious approach. Retail investors better off investing in crypto ETPs, according to experts. SEC expected to rule on ETH products in May.
Key Points
1. The Financial Conduct Authority in the UK only supports crypto products for institutional investors, but industry experts are calling for retail customers to also have access to such offerings.
2. The FCA updated its stance on crypto ETNs, allowing recognized investment exchanges to list such offerings for professional investors, similar to strides made in the US and elsewhere.
3. The London Stock Exchange announced it would start accepting applications for physically backed bitcoin and ether ETNs in the second quarter, following the FCA’s support for crypto ETNs for professional investors.