By Elena Vardon


The U.K.'s Financial Conduct Authority is allowing professional investors to launch crypto-backed exchange-traded notes.

The financial regulator on Monday said that it won't object to requests from recognized investment exchanges to create a U.K.-listed market segment for these products. ETNs are unsecured debt products that track an underlying index of securities. They are created by a financial institution and trade on a stock exchange.

"With increased insight and data due to a longer period of trading history, the FCA believes exchanges and professional investors should now be able to better establish whether cETNs meet their risk appetite," it said.

The watchdog kept its ban on the sale of crypto-backed ETNs and crypto derivatives to retail customers as it sees these products as ill-suited for nonprofessional investors.

Separately, the London Stock Exchange said on Monday that it will accept applications for Bitcoin and Ethereum crypto ETNs in the second quarter of 2024.


Write to Elena Vardon at elena.vardon@wsj.com


(END) Dow Jones Newswires

03-11-24 0600ET