Bitcoin Reaches New All-Time High, Surpassing $71,000!

By Trisha Andrada

Mar 11, 2024 08:07 AM EDT

Bitcoin prices surged on Monday, Mar. 11, hitting a new record high of over $71,000. This was after the British financial authority announced that it would permit exchanges to market cryptocurrency-linked exchange-traded products for the first time.

New All-Time Peak

In a notice published on Monday, the Financial Conduct Authority (FCA) said it would not oppose solicitations from accredited investment platforms to establish a market segment in the United Kingdom for exchange-traded notes (ETNs) backed by cryptocurrency.

For professional investors' sake and to keep trading under control, exchanges should implement adequate restrictions. Complete compliance with the listing system in the UK, including the issuance of prospectuses and continuing disclosures, is required.

CNBC reported that after the news, the price of Bitcoin jumped more than 3% to $71,726.49 just before 4:30 AM ET, setting a new record. Almost 2% of Ether's value increased, reaching $4,014.90.

SALT LAKE CITY, UT - APRIL 26: A pile of Bitcoins are shown here after Software engineer Mike Caldwell minted them in his shop on April 26, 2013 in Sandy, Utah. Bitcoin is an experimental digital currency used over the Internet that is gaining in popularity worldwide.
(Photo : George Frey / Getty Images)

For Professional Investors Only

Following the FCA's announcement on Monday, the London Stock Exchange said it would begin accepting applications to admit bitcoin and ether ETNs in the second quarter of this year.

The FCA has made clear that ETNs may only be purchased by professional investors. Retail investors in the UK are now unable to purchase crypto-linked ETNs or derivatives because the country's stance is that such products pose an excessive risk to consumers.

The FCA noted that it would continue to stress that cryptoassets are unsafe and mostly unregulated. "Those who invest should be prepared to lose all their money," the agency stated.

See Also: Memecoins Like Dogecoin and Shiba Inu Surge as Bitcoin Rally Continues

ETNs vs. ETFs

The United Kingdom regulators followed suit after the United States authorized the first spot bitcoin exchange-traded funds (ETFs). ETFs from BlackRock, Fidelity, Grayscale, and other large corporations are trading after the Securities and Exchange Commission's (SEC) approval.

The difference between an ETN and an ETF is that the former is a bank-issued unsecured debt securities, and the latter is a fund that owns assets. ETNs are usually tied to a market index or benchmark. At maturity, an ETN will pay out the whole value of the index, less any management costs.

Bitcoin proponents point out that this will cause more financial institutions to invest in Bitcoin and similar cryptocurrencies. They claim this will boost prices as more serious money enters the market.

See Also: Tether's USDT Surpasses $100 Billion Milestone, Emerges as World's Largest Stablecoin Amid Bitcoin Surge

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