UK FCA proposes allowing authorized funds to allocate up to 10% to crypto ETNs (opens original article in a new tab)

The UK FCA proposes allowing authorized investment funds to hold up to 10% of their assets in crypto ETNs, aiming to address a regulatory gap and manage risks, while excluding certain fund types and not permitting direct crypto holdings.

• FCA proposes 10% cap on crypto ETNs for authorized funds to manage risks.
• Qualified investor schemes would have no cap, while long-term and non-UCITS funds are excluded.
• FCA does not currently allow direct crypto holdings in funds, pending further review.