Key facts
- The FCA has proposed allowing authorized investment funds to invest in crypto ETNs.
- Funds can allocate up to 10% of assets to crypto ETNs under the proposal.
- This follows the FCA's lifting of a retail ban on crypto ETNs last year.
The Financial Conduct Authority (FCA) in the United Kingdom has put forth a proposal that would permit authorized investment funds to allocate a portion of their assets to crypto exchange-traded notes (ETNs). Specifically, the proposal suggests allowing up to 10% of a fund's assets to be invested in these instruments. This development comes after the FCA lifted its long-standing ban on crypto ETNs for retail investors in the previous year, signaling a gradual opening of regulated investment avenues for digital assets.