Bitcoin prices reached a new all-time high above $71,000 on Monday following an announcement by the British financial watchdog allowing exchanges to list cryptocurrency-linked exchange-traded products for the first time.
In a notice issued on Monday, the Financial Conduct Authority stated that it would not oppose requests from recognized investment exchanges to establish a U.K.-listed market segment for crypto-backed exchange-traded notes, or ETNs.
Exchanges seeking to list these products must ensure that they have sufficient controls in place to ensure orderly trading and provide adequate protection to professional investors. They are required to comply with all U.K. listings regime requirements, including issuing prospectuses and ongoing disclosures.
At around 4:30 a.m. ET, Bitcoin surged over 3% to reach $71,726.49, setting a new record high, while Ether also saw a nearly 2% increase to $4,014.90.
The London Stock Exchange acknowledged the FCA’s announcement in a separate statement, indicating that it would begin accepting applications for the admission of bitcoin and ether ETNs from the second quarter of this year.
The FCA specified that only professional investors would be permitted to purchase ETNs, as the U.K. currently restricts retail investors from accessing crypto-linked ETNs or derivatives due to their perceived high risk.
The FCA reaffirmed its stance that crypto ETNs and derivatives are not suitable for retail investors, emphasizing the potential harm they may pose to consumers.
Source (CNBC)
