The UK’s Financial Conduct Authority (FCA) has announced the lifting of a four-year ban on retail access to crypto exchange-traded notes (ETNs), with the policy change set to take effect on 8 October 2025. This decision allows retail investors to purchase ETNs tracking digital assets such as bitcoin through FCA-regulated Recognised Investment Exchanges (RIEs). The move represents a significant regulatory shift, with the FCA acknowledging that the cryptocurrency market has matured and gained broader public understanding since the 2021 ban, which was imposed due to concerns over volatility and investor comprehension [1].
Bitcoin, which was trading at approximately $29,000 in 2021, has since surged over 325% to surpass $124,000 by August 2025. This growth has been driven by institutional adoption, the introduction of U.S. spot Bitcoin ETFs, and a more favorable regulatory environment in key markets. The FCA’s consumer research indicates that approximately 12% of UK adults—around 7 million people—now own some form of cryptocurrency, up from 4% in 2021. These findings reflect the growing familiarity with digital assets among retail investors, a factor likely influencing the FCA’s decision to reintroduce crypto ETNs [1].
An ETN is a stock exchange-listed debt instrument that tracks the price of an underlying asset, such as bitcoin. Unlike direct cryptocurrency ownership, ETNs do not require investors to hold the asset or manage digital wallets, offering a more accessible and familiar investment vehicle for traditional investors. They can be traded on standard brokerage accounts and, in some cases, held in tax-advantaged accounts like ISAs. However, ETNs expose investors to the credit risk of the issuing institution, as they are unsecured debt obligations. If the issuer defaults, investors may lose their entire investment, and ETNs are not protected under the Financial Services Compensation Scheme (FSCS) [1].
The reintroduction of crypto ETNs is being framed as a turning point for the UK’s role in global crypto markets. The UK has been gradually developing a regulatory framework for digital assets, aiming to integrate cryptocurrencies into the traditional financial system while ensuring investor protection. The FCA’s executive director of payments and digital finance, David Geale, emphasized that the cryptocurrency market has “become more mainstream and better understood,” and the regulator seeks to provide investors with more choice while maintaining appropriate safeguards [1].
The UK’s approach contrasts with regulatory developments in the U.S., where the Trump administration has pursued an aggressive pro-crypto agenda. The president has emphasized making the U.S. the “Crypto Capital of the World,” leading to initiatives such as the SEC’s “Project Crypto” and the passage of the GENIUS Act, a first-of-its-kind federal law for payment stablecoins. The broader trend of regulatory innovation and investor appetite for crypto exposure has created a favorable environment for products like ETNs to gain traction in new markets [3].
Analysts suggest that the UK’s decision could encourage other countries to follow suit in opening retail access to crypto products, particularly as digital assets become more integrated into traditional finance. The UK’s regulatory clarity, combined with the growing institutional interest in cryptocurrencies, positions it as a potential leader in shaping the future of global crypto markets [2]. As retail investors gain more accessible and regulated ways to participate, the role of ETNs and similar instruments in portfolio diversification is likely to expand, reflecting the ongoing convergence of digital and traditional asset classes [1].
Source: [1] What does the FCA’s new crypto ETN policy mean for retail … (https://uk.finance.yahoo.com/news/fca-crypto-etn-policy-retail-investors-bitcoin-050002277.html) [2] UK Opens Retail Access to Crypto ETNs (https://www.blockchain-council.org/cryptocurrency/uk-opens-retail-access-to-crypto-etns/) [3] Crypto’s integration into the traditional financial system is … (https://www.davispolk.com/insights/client-update/cryptos-integration-traditional-financial-system-underway)
