Bitcoin Surges to Record High Above $72,000 as UK Embraces Crypto ETNs

Acknowledging the FCA's announcement, the London Stock Exchange announced that it would accept applications for the admission of bitcoin and ether ETNs starting from the second quarter of the year.

Bitcoin Surges to Record High Above $72,000 as UK Embraces Crypto ETNs
Photo by Michael Förtsch / Unsplash

Bitcoin reached a new milestone on Monday, surpassing $72,318.99 as demand for the leading cryptocurrency continued to surge unabated. The rally comes as regulatory hurdles for digital asset trading products are being cleared, with the announcement of its approval for recognized investment exchanges to launch crypto-backed exchange-traded notes (ETNs).

The FCA revealed that it would not oppose requests from recognized investment exchanges to introduce a UK-listed market segment for crypto-backed exchange-traded notes (ETNs). These ETNs would be subject to strict regulations to ensure orderly trading and provide adequate protection for professional investors, including compliance with the UK's listing regime and ongoing disclosures.

Bitcoin's price soared over 3% to hit $72,318.99 marking a new all-time high. Ether, the second-largest cryptocurrency, also experienced a significant increase, climbing over 2% to reach $4,041.23. near its highest level in two years. Speculation that U.S. regulators may approve the listing of spot ether ETFs this year has driven the price of ether up by 75% since the beginning of the year, further fueling optimism in the cryptocurrency market.

The impending halving event in April, which occurs every four years and reduces the rate of new bitcoin supply, is also expected to support Bitcoin's price. Additionally, news that the London Stock Exchange (LSE) plans to accept applications for Bitcoin and ethereum ETNs in the second quarter of this year contributed to the positive sentiment.

The FCA's decision to permit crypto-linked ETNs comes on the heels of similar moves by US regulators, who recently approved the first-ever spot bitcoin exchange-traded funds (ETFs). This regulatory shift is expected to pave the way for increased institutional investment in cryptocurrencies, potentially driving prices higher as more capital enters the market.

As crypto assets continue to gain mainstream acceptance, regulators worldwide are grappling with how to strike a balance between fostering innovation and protecting investors. The FCA's decision is evolving the regulatory landscape surrounding cryptocurrencies and their growing influence in the global financial system.