Following the announcement by the British financial watchdog that exchanges would be permitted to list cryptocurrency-linked exchange-traded products for the first time, bitcoin prices spiked higher on Monday, surpassing $72,000. In a notice published on Monday, the Financial Conduct Authority stated that it would not oppose requests from accredited investment exchanges to establish a market segment for cryptocurrency-backed exchange-traded notes, or ETNs, that are listed in the United Kingdom.

Exchanges must make sure they have enough controls in place to guarantee orderly trading and appropriate protection for experienced investors. They have to adhere to all listing regulations in the United Kingdom, including providing prospectuses and continuing disclosures, at approximately 6:50 a.m. ET, the price of bitcoin increased by more than 3% to $72,211.51, setting a new record high. At 7:15 a.m. ET, had since somewhat declined and was once again below $71,530.13. Ether surged to $4,041.23, up more than 2%.

What do you think Bitcoin will do to the world? “Bitcoin will do to banks what email did to the postal industry.” —Rick Falkvinge.

In a separate statement released Monday, the London Stock Exchange announced that it will accept applications for the admission of ether ETNs and bitcoin starting in the second quarter of this year, acknowledging the FCA’s statement. The FCA made it clear that ETNs could only be purchased by qualified investors. Because it believes they are too risky for consumers, the U.K. currently prohibits retail investors from purchasing derivatives or ETNs linked to cryptocurrencies. Crypto ETNs, or cETNs, and crypto derivatives, according to the FCA, are still “ill-suited for retail consumers due to the harm they pose.”

The first-ever spot bitcoin exchange-traded funds were approved by US regulators before the UK’s action. ETFs from BlackRock, Fidelity, Grayscale, and other significant companies have received approval from the Securities and Exchange Commission and are currently available for trading. An ETN is an unsecured debt security that is issued by a bank, as opposed to an ETF, which is a fund that holds assets. Usually, it is connected to a benchmark, such as an index of the market. An exchange-traded note (ETN) guarantees to pay the entire index value at maturity, less management costs.

Bitcoin investors predict that this will boost institutional investment in the digital currency. They claim that more substantial capital poured into the market will have a positive knock-on effect on the price. Following resistance from the regulator, the FCA decided to permit bitcoin ETNs with a cryptocurrency component. 2020 saw the FCA outlaw the retail sale of derivatives and ETNs linked to cryptocurrencies, citing their unsuitability for regular investors. The FCA stated at the time that consumers “may suffer harm from sudden and unexpected losses” and that financial crime in the secondary market and the extreme price volatility of cryptocurrencies were contributing factors.

Do you think that Bitcoin is important? “It’s money 2.0, a huge huge huge deal.”—Chamath Palihapitiya.