Yesterday, Bitcoin hit a new record high when it rose above $71,000 following the UK Financial Conduct Authority (FCA) announcing that they will no longer object to "exchange-traded notes" (ETN) for the two largest cryptocurrencies, Bitcoin and Ethereum.
Crypto expert Mads Eberhardt explains the significance of the ETNs to Ekstra Bladet, "They will offer exposure to Bitcoin and Ethereum through a traditional exchange-traded instrument. This means that it will not be traded on a crypto exchange but, on the contrary, a traditional exchange."
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The new, British crypto funds are not entirely dissimilar to the American Bitcoin exchange-traded funds (ETFs), which were approved two months ago, and also aided Bitcoin’s skyrocketing value: The cryptocurrency has increased 70% in 2024 alone.
But despite this new record high, Eberhardt is not an irrepressible optimist when it comes to the British ETNs' influence on Bitcoin’s value.
"Despite the UK Financial Conduct Authority sending Bitcoin higher than ever before, one should not expect the British funds to have the same impact as the American ones," he states.
"The UK Financial Conduct Authority has specified that the funds will only be available to professional investors, including investment firms. This means that British private investors will not have the opportunity to buy the funds."
But Eberhardt nevertheless remains positive regarding Bitcoin’s upward trajectory.
"I believe there is a greater chance that Bitcoin will hit $100,000 in 2024 than not."