In a recent announcement, the Financial Conduct Authority (FCA) in the United Kingdom made a significant decision regarding the crypto asset market.
The regulatory body has approved global asset companies in the UK to issue crypto-based exchange-traded funds (ETFs). Following the approval of ETFs in the United States in January, a similar approval in the United Kingdom is seen as a move to support the sector.
Crypto adoption continues to rise The recent approval by the UK regulatory body for crypto-backed investment products is seen as the latest example of global regulators taking a friendly approach to the crypto industry.
Crypto-backed investment products approved by the FCA can only be sold to institutional investors, and individual investors cannot trade these products. In addition, institutions wishing to offer exchange-traded notes (ETNs) related to crypto in the UK will need to meet stringent regulatory requirements.
London Stock Exchange makes the first move Following this development, the London Stock Exchange announced that it would accept applications for Bitcoin and Ether ETNs from the second quarter of the year. The increased interest in such investment products is believed to be directly linked to the U.S. SEC’s reference.
The approval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission after more than a decade is considered a significant indication of the industry’s maturity, and it has led other jurisdictions to reconsider their stance on the sector.
On the other hand, since the regulatory approval opening the way for institutional funds, Bitcoin has continued its rise without losing momentum since last month. Currently, Bitcoin has reached a record level of $72,226. While the largest cryptocurrency has been fluctuating around $69,000 in the past week, it continues to find support in the $70,000 region this week. Rising by 10% in the last week, Bitcoin has gained over 50% in value in the past month.
source: tr.investing.com/ prepared by Melisa Beğiç