FCA to allow retail investors access to crypto ETNs
The Financial Conduct Authority (FCA) announced on Friday it will end a four-year ban on retail access to crypto exchange-traded notes (ETNs).
Effective 8 October, individual investors in the UK will be able to buy crypto ETNs trading on FCA-approved domestic exchanges.
Crypto ETNs are a form of debt instrument, often described by asset managers as ‘physically backed’ because they are collateralised by the underlying cryptocurrency.
The UK watchdog said financial promotion rules will apply to the products so consumers are not offered inappropriate incentives to invest.
Consumer Duty will also apply to issuers of the ETNs being offered to retail, however, investments in these strategies will not be covered by the Financial Services…
