The UK's Financial Conduct Authority (FCA) said on Monday that it will approve applications from Recognized Investment Exchanges (RIEs) to establish a market segment for crypto asset-backed exchange-traded notes (ETNs).
It should be noted that these ETNs will only be available to professional investors, including investment firms and credit institutions.
ETNs are a type of exchange-traded product that typically track an index or underlying assets and are often issued by a bank or investment manager.
The London Stock Exchange has confirmed that it will start accepting applications for Bitcoin and Ether ETNs in the second quarter of the year.
However, trading in these products remains prohibited for retail investors.