- ORIGINAL NEWS
Bitcoin hits record high above $72,000 as UK opens the door to crypto exchange-traded products
- SUMMARY
The UK’s financial regulator has given the green light to exchanges that want to create exchange-traded notes (ETNs) backed by cryptocurrencies like Bitcoin and Ethereum.
This means that investors will be able to buy and sell ETNs that track the price of these cryptocurrencies on UK exchanges.
The regulator has emphasized that these products are only suitable for professional investors, not retail investors, due to their high risk and volatility.
However, retail investors may still be able to invest in cryptocurrencies through managed funds.
The regulator’s move follows a similar decision by the US Securities and Exchange Commission, which recently approved the first-ever US spot Bitcoin ETFs.
- NEWS SENTIMENT CHECK
- Overall sentiment:
positive
Positive
“Bitcoin’s price surged over 3% to $71,726.49 at around 4:30 a.m. ET, hitting a fresh all-time high.”
“The FCA’s decision to allow for crypto-linked bitcoin ETNs follows pushback from the regulator. In 2020, the FCA banned the sale of crypto-linked ETNs and derivatives to consumers, saying they were ill-suited for everyday investors.”
Negative
“The FCA said it continues to believe cETNs — crypto ETNs —and crypto derivatives are “ill-suited for retail consumers due to the harm they pose.”