The FCA will allow retail investors to buy crypto ETNs through FCA-approved exchanges
The UK has officially lifted its ban on cryptocurrency exchange-traded notes (ETNs), marking a major shift in its approach toward digital assets. The Financial Conduct Authority (FCA) announced on Wednesday that retail investors will now be allowed to buy crypto ETNs through FCA-approved exchanges in the UK, ending restrictions that had been in place since January 2021.
Crypto ETNs are financial instruments that give investors exposure to cryptocurrencies without directly owning them. These products act as debt securities, where the value tracks a digital asset such as Bitcoin or Ethereum. They are traded on traditional exchanges and backed by regulated custodians that securely hold the underlying crypto.
According to David Geale, the FCA’s executive director of payments and digital finance, the decision reflects how much the crypto market has evolved. He noted that the products are now “better understood and more mainstream,” allowing the regulator to give consumers more choice while maintaining safeguards. The FCA emphasized that investor protections will remain a priority as it monitors how these products perform in the market.
While the ban on crypto ETNs is being lifted, the FCA made it clear that retail access to crypto derivatives will still be restricted. Officials said they plan to keep reviewing the industry and could adjust policies if market risks change. This approach aligns with the UK government’s goal of balancing innovation with responsible oversight.
In addition to reopening the ETN market, the government announced new tax rules that will allow crypto ETNs to be included in registered pension schemes starting October 8. By April 2026, they will also be eligible for inclusion in Stocks & Shares Individual Savings Accounts, offering investors tax advantages.
Industry analysts expect this move to boost the UK’s crypto investment landscape. Research by IG Group suggests the market could grow by up to 20%, with nearly one-third of UK adults expressing interest in investing through regulated ETNs.
