English regulator surprised: crypto-etns accessible to British investors

The British financial regulator FCA wants to give private investors regulated access to cryptog -related investment products. On June 6, the body announced that it wants to eliminate the ban on Exchange-Traded Notes (Etns) with crypto currency as the underlying value.

FCA wants to allow crypto-etns on recognized fairs

If the proposal is approved, private investors in the United Kingdom will soon be allowed to invest in crypto-ethns through recognized fairs such as the London Stock Exchange. Until now, these products were only available for professional parties.

Etns are listed debt instruments that follow the price of digital assets such as Bitcoin (BTC), without the investor having to possess the crypto currency itself. Well -known providers such as 21Shares, Wisdomtree, Invesco and Bytetree have already noted such products that are now also becoming available to the wider audience.

The supervisor does set clear conditions. Only ETNS that meet the British promotion requirements and are traded are eligible for regulated scholarships. Risks must also be clearly communicated and aggressive marketing methods are prohibited.

What are ethns and how do they differ from ETFs?

ETNS resemble ETFs in terms of use, but they are unsuccessful loans issued by financial institutions. Investors do not get direct ownership of the underlying crypto, but only follow the price fluctuations. The experience is similar to that of an ETF, with its own ticker and real -time tradability, but with a different risk profile.

According to Bytetree founder Charlie Morris, the step of the FCA is positive: “I am pleased that the ban on crypto-networks for retail investors will be lifted. This is an important step forward.”

Spot ETFs remain prohibited in the UK for the time being

The FCA proposal does not make room for spot Bitcoin ETFs, as they have already been approved in the United States. Products such as BlackRock’s IBIT therefore remain unreachable for British investors for the time being.

Nevertheless, the decision is seen as an important shift. It is the first time that the FCA wants to give private investors regulated access to crypto-related products. This makes broader crypto access within the financial system a step closer.