The UK FCA plans to allow authorized funds to hold up to 10% in crypto ETNs

By: rootdata|2026/06/09 04:45:01
0
Share
copy

According to The Block, the UK's Financial Conduct Authority (FCA) has proposed allowing authorized investment funds (including UCITS schemes and most non-UCITS retail schemes) to allocate up to 10% of their assets to cryptocurrency exchange-traded notes (ETNs).

This proposal is included in the FCA's 52nd quarterly consultation document, and the public and institutions have five weeks to submit their opinions, with a deadline of July 13. The FCA stated that this move aims to bridge the regulatory gap between individual retail investors and authorized funds. Since the FCA lifted the four-year retail ban on cryptocurrency ETNs in August 2025, individual investors can directly invest in ETNs, but funds were previously still subject to an "effective ban."

The FCA emphasized that the 10% cap is deliberately set, as exceeding this ratio could force funds to be reclassified as restricted public investment products, affecting their retail fund status. In the proposal, professional and qualified investor schemes are not subject to the cap; long-term asset funds and non-UCITS retail schemes operating in the form of alternative investment funds will be excluded.

The FCA pointed out that cryptocurrencies do not align with the investment objectives of these funds. From the industry perspective, the Investment Association supports the proposal, believing that acquiring crypto assets through regulated listed products is manageable in terms of risk, and the 10% cap helps manage fund risk. Fund managers must ensure that their holdings are consistent with the investment objectives and risk characteristics disclosed by the fund and disclose significant cryptocurrency ETN holdings.

The FCA emphasized that it is not currently considering allowing authorized funds to directly hold cryptocurrency assets for investment and will make a decision after assessing the impact of the upcoming cryptocurrency asset regulatory framework and client asset protection rules.

You may also like

Morning Report | BitMine increased its holdings by 126,971 ETH last week; trader Eugene announced his exit from the crypto market

Overview of Important Market Events on June 8th

Wang Chuan: How can one not feel anxious after the neighbor Old Wang made thirty times profit by investing in storage stocks? (Seven) - A quarter-century cycle

In-depth analysis of the "reflexivity" bubble trap in storage stocks: Beware of the backlash from the bullwhip effect and the false narrative of high growth; do not let the short-term myth of wealth become a wealth abyss that cannot be recovered for 25 years.

Cryptocurrency CEXs are flocking to sell US stocks, and traditional brokerages are facing an "uninvited guest."

The major reshuffle has just begun.

$75 billion in foreign capital has fled, and South Korean retail investors have absorbed it all using leverage

Despite the accelerated migration of Korean funds from cryptocurrency to the stock market, the Korean market remains an important barometer for global cryptocurrency retail liquidity and recovery turning points.

Japan’s Three Megabanks Plan Joint Stablecoin Issuance in Fiscal 2026

MUFG, SMBC, and Mizuho reportedly plan to jointly issue fiat-pegged stablecoins in fiscal 2026, signaling Japan’s growing push into bank-led digital payment infrastructure.

Humanity Discloses H Token Dual-Chain Attack Details, With Losses on Ethereum and BSC Exceeding $36 Million

Humanity said the H token attack across Ethereum and BSC caused more than $36 million in losses after leaked ProxyAdmin keys enabled malicious contract upgrades and token minting.

Popular coins

Latest Crypto News

Read more
iconiconiconiconiconiconicon
Customer Support:@weikecs
Business Cooperation:@weikecs
Quant Trading & MM:bd@weex.com
VIP Program:support@weex.com