FCA Proposes Allowing Funds to Invest in Crypto ETNs

The FCA has proposed that regulated retail investment funds can hold up to 10% of their assets in crypto ETNs, citing concerns over the speculative nature of cryptocurrencies.

The UK Financial Conduct Authority (FCA) has proposed allowing regulated retail investment funds to hold up to 10% of their assets in exchange-traded notes (ETNs) linked to cryptocurrencies. The regulator deems a higher allocation inappropriate due to the speculative nature of the underlying assets and is not currently considering direct investments by authorized funds in cryptocurrencies.

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