The 10% cap set by the FCA is quite a delicate balance: it lets traditional funds try crypto ETNs through a crack in the door, while also keeping retail investors from getting carried away—British regulatory finesse always walking a tightrope between “embracing innovation” and “don’t mess up pensions.” Unlimited participation for professional players? Sure—that’s the backdoor left for institutions. Let’s wait and see when the July consultation deadline comes.

Crypto news, the UK Financial Conduct Authority (FCA) proposes to allow authorized investment funds to allocate up to 10% of their assets to crypto exchange-traded notes (ETNs), with related restrictions set. The public can submit opinions before July 13. In the proposal, professional and qualified investor schemes are not subject to the cap, and some fund types are excluded. The UK Asset Management Association supports the proposal, believing that the 10% limit helps with risk management. FCA stated that they are not currently considering allowing funds to directly hold crypto assets and will decide after evaluating the relevant regulatory framework.