UK FCA proposes crypto ETN allocation for funds

The UK's Financial Conduct Authority (FCA) is considering a significant shift in its investment regulations, proposing to allow authorized funds to allocate up to 10% of their portfolios to crypto Exchange-Traded Notes (ETNs). This move, if approved, would represent a notable step towards integrating digital assets into mainstream investment products within the UK. It could provide investors with regulated exposure to cryptocurrencies through familiar fund structures, potentially increasing adoption and liquidity in the crypto market. The proposal aims to balance investor protection with access to emerging asset classes.