The UK Financial Conduct Authority plans to allow authorized funds to hold up to 10% of encrypted ETN Odaily Planet Daily News: The Financial Conduct Authority (FCA) in the UK has proposed allowing authorized investment funds (including UCITS schemes and most non UCITS retail schemes) to allocate up to 10% of their assets to crypto exchange traded notes (ETNs). This proposal will be included in the FCA's 52nd quarter consultation document, and the public and institutions have five weeks to submit their opinions, with a deadline of July 13th. FCA stated that this move aims to bridge the regulatory gap between individual retail investors and authorized funds. After the FCA lifted the four-year retail ban on encrypted ETNs in August 2025, individual investors can directly invest in ETNs, but funds were still subject to the "effective ban" restrictions. FCA emphasizes that the 10% cap is deliberately set, and exceeding this ratio may force funds to reclassify as restricted public investment products, affecting their retail fund status. In the proposal, professional and qualified investor plans are not subject to upper limit constraints; Long term asset funds and non UCITS retail plans operating in the form of alternative investment funds will be excluded. FCA points out that cryptocurrencies do not align with the investment objectives of these funds. In terms of industry, the Investment Association in the UK supports the proposal, believing that obtaining cryptocurrency assets through regulated listed products can control risks, and a 10% cap can help manage fund risks. The fund manager shall ensure that the investment objectives and risk characteristics disclosed by the fund are consistent with those of the holdings, and disclose important encrypted ETN holdings. FCA emphasizes that it is currently not considering authorizing funds to directly hold cryptocurrency assets for investment, and will make a decision after evaluating the impact of the upcoming cryptocurrency regulatory system and customer asset protection rules. （The Block）