Chairman and Chief Editor
Bedour Ibrahim

Exchanges would need to ensure they have sufficient controls in place

Bitcoin hits record high above $72،000 as UK opens the door to crypto exchange-traded products

Monday 11/March/2024 - 04:21 PM
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Bitcoin prices rallied Monday to hit a fresh record high above $72،000، after the British financial watchdog said it would allow exchanges to list cryptocurrency-linked exchange-traded products for the first time.

The Financial Conduct Authority said in a notice Monday that it would not object to requests from recognized investment exchanges to create a U.K.-listed market segment for crypto-backed exchange-traded notes، or ETNs.

Sufficient control

Exchanges would need to ensure they have sufficient controls in place، so that trading is orderly and proper protection is afforded to professional investors. They must meet all the requirements of the U.K.’s listings regime، issuing prospectuses and ongoing disclosures.

Bitcoin’s price surged over 3% to $72،211.51 at around 6:50 a.m. ET، hitting a fresh all-time high. It has since receded slightly and was back below $71،530.13 as of 7:15 a.m. ET.

Ether climbed more than 2%، to $4،041.23.

The London Stock Exchange acknowledged the FCA’s announcement Monday، saying in a separate statement that it would accept applications for the admission of bitcoin and ether ETNs from the second quarter of this year.

The FCA clarified that only professional investors would be able to buy ETNs. The U.K. currently doesn’t allow retail investors to purchase crypto-linked ETNs or derivatives، as it says they are too risky for consumers.

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.”

It noted، “As a result، the ban on the sale of cETNs (and crypto derivatives) to retail consumers remains in place.”

The FCAadded it “continues to remind people that cryptoassets are high risk and largely unregulated. Those who invest should be prepared to lose all their money.”