Financial regulator permits launch of crypto-backed ETNs for professional investors
- U.K. watchdog allows professional investors to launch crypto-backed exchange-traded notes
- Financial Conduct Authority won’t object to requests from recognized investment exchanges
- ETNs are unsecured debt products that track an underlying index of securities
- Ban on sale of crypto-backed ETNs and crypto derivatives to retail customers remains
- London Stock Exchange to accept applications for Bitcoin and Ethereum crypto ETNs in Q2 2024
The U.K.’s Financial Conduct Authority has announced that it will allow professional investors to launch crypto-backed exchange-traded notes (ETNs). This move comes as the regulator believes that exchanges and professional investors now have enough insight and data to determine whether these products meet their risk appetite. However, the ban on the sale of crypto-backed ETNs and crypto derivatives to retail customers remains in place. In a separate development, the London Stock Exchange has revealed that it will start accepting applications for Bitcoin and Ethereum crypto ETNs in the second quarter of 2024.
Factuality Level: 9
Factuality Justification: The article provides a clear and factual overview of the U.K.’s Financial Conduct Authority allowing professional investors to launch crypto-backed exchange-traded notes. It includes relevant details about the decision, the nature of ETNs, and the reasoning behind the FCA’s stance on retail customers. The information presented is accurate and objective without any noticeable bias, sensationalism, or misleading content.
Noise Level: 3
Noise Justification: The article provides relevant information about the U.K.’s Financial Conduct Authority allowing professional investors to launch crypto-backed exchange-traded notes. It explains what ETNs are and why the FCA is allowing them for professional investors. The article stays on topic and does not dive into unrelated territories. It supports its claims with information about the FCA’s decision and the London Stock Exchange’s plans. However, the article could benefit from more in-depth analysis on the potential impact of this decision and the implications for the cryptocurrency market.
Financial Relevance: Yes
Financial Markets Impacted: The news article pertains to the Financial Conduct Authority (FCA) in the UK and the London Stock Exchange, indicating potential impact on the financial markets and companies involved in cryptocurrency trading and investment.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the decision of the FCA to allow professional investors to launch crypto-backed exchange-traded notes (ETNs). While this decision may have implications for the financial markets and companies involved in cryptocurrency trading, there is no mention of any extreme event or its impact in the article.
Public Companies: London Stock Exchange (LSE)
Key People: Elena Vardon (Author)
Reported publicly:
www.marketwatch.com 
