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March 11, 2024
Bitcoin lifted over $71,000 as UK’s FCA approves crypto ETNs

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During the Asian trading session on Monday, Bitcoin (BTC) soared past $71,000 for the first time in history.

This surge comes on the heels of the U.S.’s approval of spot Bitcoin spot exchange-traded funds (ETFs) back in January, propelling the cryptocurrency to breach the $70,000 mark last week for the first time. Similarly, Ethereum (ETH) surpassed the $4,000 milestone on Monday. Now companies are looking to do the same with Ethereum.

The rally resulted in the three-month futures premium on leading exchanges, such as Binance, climbing above 25%. This premium increase could entice cash-and-carry traders, potentially enhancing market liquidity.

What’s causing the Bitcoin price to rise?

The surge in prices closely followed the London Stock Exchange’s recent openness to Bitcoin and Ethereum exchange-traded notes (ETNs) applications and the low liquidity of the Asian markets.

In the United Kingdom, the Financial Conduct Authority (FCA) announced on Monday that it would start accepting institutional investors’ applications for crypto asset-backed ETNs, with the London Stock Exchange confirming its readiness to process applications for Bitcoin and Ethereum ETNs in the coming quarter.

FCA’s approval of crypto ETNs represents a significant development in the financial and cryptocurrency markets. This approval implies that these financial instruments, which track the performance of cryptocurrencies, can be traded on regulated exchanges and offered to retail and institutional investors in the UK.

As a direct consequence, it could lead to an increase in the accessibility of cryptocurrencies to a broader range of investors who prefer or are required to invest through regulated venues. This could enhance the legitimacy and acceptance of cryptocurrencies as an investable asset class, potentially leading to increased investment flows into the crypto market as time goes on.

Additionally, the regulatory oversight associated with FCA approval may help to improve investor confidence by ensuring that crypto ETNs adhere to specific standards of transparency, reporting, and consumer protection. This step might also pave the way for further regulatory clarity and the development of additional crypto-related financial products in the UK market.

Featured image: Ideogram

The post Bitcoin lifted over $71,000 as UK’s FCA approves crypto ETNs appeared first on ReadWrite.

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