U.K.'s FCA moves to allow mutual funds 10% exposure to crypto ETNs
Summary
The U.K. Financial Conduct Authority proposed letting certain retail investment funds hold up to 10% of assets in cryptocurrency exchange-traded notes (ETNs). The proposal would apply to UCITS funds and some non-UCITS retail schemes, which are regulated pooled investment vehicles similar to U.S. mutual funds. The FCA said the cap is intended to limit the risk of significant losses from crypto ETN exposure. The move would expand retail access to crypto-linked products in the U.K. and continue the broader shift toward mainstream acceptance of crypto exchange-traded products. It also reflects ongoing criticism that strict U.K. rules may leave the country behind other markets.
