BLK - Bitcoin Hits Record High As U.K. To Approve Crypto Exchange Traded Products

2024-03-11 09:53:44 ET

The price of %Bitcoin () has hit a record high above $72,000 U.S. on news reports that regulators in the United Kingdom (U.K.) plan to approve %Cryptocurrency exchange-traded products.

Britain’s Financial Conduct Authority said in a notice issued on March 11 that it would not object to requests from financial institutions to create U.K.-listed crypto exchange traded notes (ETNs).

Unlike an ETF, which is a fund that holds assets, an ETN is an unsecured debt security issued by a bank.

ETNs are usually linked to a market index or other benchmark. An ETN promises to pay out at maturity the full value of the index, minus applicable management fees.

The move by the U.K. regulators comes nearly two months after the U.S. Securities and Exchange Commission (SEC) approved spot Bitcoin exchange-traded funds (ETFs) for the American market.

The Financial Conduct Authority said that sufficient controls need to be put in place so that trading in crypto products is orderly and proper protections are in place to cover investors.

Bitcoin’s price has risen more than 3% on the news out of the U.K., reaching as high as $72,211.51 U.S., a fresh record.

The London Stock Exchange acknowledged the British regulator’s statement and said that it would accept applications for both Bitcoin and %Ethereum () ETNs starting in this year’s second quarter.

The price of Ethereum has risen 4% on the news and is now trading above $4,000 U.S. for the first time in two years.

Bitcoin ETFs in America from companies such as BlackRock (NYSE: BLK), Fidelity, and other firms have attracted billions of dollars worth of capital in recent months.

Bitcoin’s price has now risen nearly 250% over the past year. The price of Ethereum has increased 172% in the last 12 months.