The United Kingdom’s financial watchdog has announced that recognized exchanges can launch crypto asset exchange-traded notes (cETNs).

Only professional investors such as investment firms and authorized credit institutions will have access, the Financial Conduct Authority said.

The decision follows the success of Spot Bitcoin exchange-traded funds (ETFs) in the United States, which led to a surge in Bitcoin prices.

The London Stock Exchange (LSE) also confirmed it would start accepting applications for Bitcoin and Ethereum ETNs in the second quarter of this year, adhering to specific guidelines to ensure the protection of professional investors.

The decision by the Financial Conduct Authority (FCA) to open the doors for cETN applications marks a significant step in the United Kingdom’s ongoing development of its regulatory landscape for digital currencies.

This initiative, which emphasizes fiat-backed stablecoins, is part of a broader strategy that anticipates expanding regulatory coverage to encompass the entire cryptocurrency domain in the future.

The LSE’s acceptance of ETNs marks a cautious yet progressive approach toward integrating cryptocurrency into the mainstream financial market, with a focus on professional investors.