Bitcoin, the world’s largest cryptocurrency by market capitalisation, surged past $72,100 to reach a record high on Monday, driven by the UK’s financial services regulator opening the door to applications for crypto asset-backed exchange-traded notes (cETNs) to trade on the London Stock Exchange.
The Financial Conduct Authority said it would not object to requests from recognised investment exchanges to create a UK-listed market segment for crypto asset-backed ETNs (CETNs), including Bitcoin and Ethereum.
“These products would be available for professional investors, such as investment firms and credit institutions authorised or regulated to operate in financial markets only,” the FCA said on its website.
“Exchanges will need to continue to make sure sufficient controls are in place, so trading is orderly and proper protection is afforded to professional investors. CETNs must meet all the requirements of the UK listing regime, for example on prospectuses and ongoing disclosure.”
In response, Bitcoin surged to $72,147.98 as of 3.55pm UAE time on Monday. So far this year, the cryptocurrency has jumped almost 70 per cent.
Ethereum also broke through the key $4,000 level on the back of the FCA announcement and could be on track to beat its November 2021 record of $4,891.
The second-biggest cryptocurrency by market cap jumped 2.76 per cent and is currently trading at $4,048.83.
ETNs are typically issued by financial institutions and are traded on stock exchanges. They are types of unsecured debt securities that track an underlying index of securities, according to Investopia.
They can be compared to exchange-traded funds (ETFs) – a low-fee basket of securities consisting of stocks, bonds, commodities or other financial assets that track global markets. Unlike ETFs, however, ETNs do not own the underlying asset – in this case, crypto.
The recent cryptocurrency bull run has been fuelled by strong demand for US-listed spot Bitcoin ETFs, which the US Securities and Exchange Commission approved in January.
The approval marked a pivotal moment for the cryptocurrency sector, clearing the way for a regulated path for institutional and retail investor participation in the cryptocurrency asset class – and signalling the end of the sector's “Wild West” era.
The SEC approved 11 spot Bitcoin ETFs offered by major asset management companies including BlackRock, VanEck, Fidelity, Franklin Templeton and Cathie Wood’s ARC.
However, the UK's FCA said that the cETNs would not be available to retail investors as crypto assets are "high risk and largely unregulated".
"The FCA continues to believe cETNs and crypto derivatives are ill-suited for retail consumers due to the harm they pose," it said.
"As a result, the ban on the sale of cETNs (and crypto derivatives) to retail consumers remains in place."
The expected Bitcoin halving next month, when the amount paid to miners is slashed in a programmed move every four years to reduce supply and maintain its scarcity value, is adding to the current rally.
Last Tuesday, Bitcoin hit $69,202, eclipsing its previous record of $68,991.85 set in November 2021.
Bitcoin's aggressive gains have triggered speculation around its price reaching as high as $123,056, according to Lukman Otunuga, senior market analyst, at FXTM.
However, the psychological level of $80,000 could act as a possible resistance – but at this point, the cryptocurrency is in uncharted territory, Mr Otunuga said.
"Regarding the average price prediction for BTC of $123,056, this will require the cryptocurrency to rally another 60 per cent from its current levels," he added.
"While the timeline is unclear, this could be a possibility given how prices have rallied over 55 per cent year-to-date and remain heavily supported by the ETF inflows and optimism around the upcoming halving in April.”
Four motivational quotes from Alicia's Dubai talk
“The only thing we need is to know that we have faith. Faith and hope in our own dreams. The belief that, when we keep going we’re going to find our way. That’s all we got.”
“Sometimes we try so hard to keep things inside. We try so hard to pretend it’s not really bothering us. In some ways, that hurts us more. You don’t realise how dishonest you are with yourself sometimes, but I realised that if I spoke it, I could let it go.”
“One good thing is to know you’re not the only one going through it. You’re not the only one trying to find your way, trying to find yourself, trying to find amazing energy, trying to find a light. Show all of yourself. Show every nuance. All of your magic. All of your colours. Be true to that. You can be unafraid.”
“It’s time to stop holding back. It’s time to do it on your terms. It’s time to shine in the most unbelievable way. It’s time to let go of negativity and find your tribe, find those people that lift you up, because everybody else is just in your way.”
UAE currency: the story behind the money in your pockets
The biog:
Favourite book: The Leader Who Had No Title by Robin Sharma
Pet Peeve: Racism
Proudest moment: Graduating from Sorbonne
What puts her off: Dishonesty in all its forms
Happiest period in her life: The beginning of her 30s
Favourite movie: "I have two. The Pursuit of Happiness and Homeless to Harvard"
Role model: Everyone. A child can be my role model
Slogan: The queen of peace, love and positive energy
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
The biog
Family: Parents and four sisters
Education: Bachelor’s degree in business management and marketing at American University of Sharjah
A self-confessed foodie, she enjoys trying out new cuisines, her current favourite is the poke superfood bowls
Likes reading: autobiographies and fiction
Favourite holiday destination: Italy
Posts information about challenges, events, runs in other emirates on the group's Instagram account @Anagowrunning
Has created a database of Emirati and GCC sportspeople on Instagram @abeermk, highlight: Athletes
Apart from training, also talks to women about nutrition, healthy lifestyle, diabetes, cholesterol, blood pressure
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
SPECS
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Company name: baraka
Started: July 2020
Founders: Feras Jalbout and Kunal Taneja
Based: Dubai and Bahrain
Sector: FinTech
Initial investment: $150,000
Current staff: 12
Stage: Pre-seed capital raising of $1 million
Investors: Class 5 Global, FJ Labs, IMO Ventures, The Community Fund, VentureSouq, Fox Ventures, Dr Abdulla Elyas (private investment)
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
