Financial regulatory body in the UK removes ban and allows crypto-based exchange-traded notes (ETNs) for investment by retail consumers, effective from October 8.
As of October 8, 2025, retail investors in the United Kingdom will be able to trade regulated crypto exchange-traded notes (ETNs) through FCA-approved Recognised Investment Exchanges (RIEs). However, it is important to note that only ETNs that comply with consumer protection regulations and are listed on FCA-approved RIEs will be available to retail investors.
The decision by the Financial Conduct Authority (FCA) marks a significant shift in the UK's regulation of individual access to crypto-linked investment products. The move follows a consultation earlier this year, driven by the increased structure, transparency, and mainstream adoption of crypto investment products.
Currently, the specific crypto ETNs that will be available to UK retail investors have not been publicly disclosed. These ETNs will primarily track major cryptocurrencies such as Bitcoin and Ethereum, but individual product issuers must comply with rules regarding transparency, suitability checks, and risk disclosure.
Crypto ETNs expose investors to the performance of the crypto market without direct asset ownership. Unlike traditional exchange-traded funds, which are backed by the underlying assets themselves, crypto ETNs are unsecured debt instruments issued by financial institutions. This means that investors cannot seek redress if issuers of ETNs default.
The FCA requires firms to follow financial promotion rules and consumer protection duties when offering crypto ETNs to retail investors. The FCA has noted an improved understanding of crypto ETNs among investors but encourages consumers to consider the level of risks before investing. Crypto ETNs remain risky for investors, and the FCA continues to monitor these high-risk products, but has not proposed a timeline for lifting the ban on crypto derivatives for retail users.
It is worth noting that products backed by major cryptocurrencies like Bitcoin and Ethereum will be available. Coinbase, a well-known cryptocurrency exchange, has secured a license from the FCA to provide cryptocurrency and fiat services in the UK. However, these services do not fall under the Financial Services Compensation Scheme.
The FCA's move to open up a previously restricted segment of the crypto market to retail investors comes at a time when the crypto market is experiencing increased interest and adoption. Crypto ETNs function similarly to traditional exchange-traded funds, providing investors with exposure to a specific asset or basket of assets. However, unlike traditional exchange-traded funds, crypto ETNs do not directly hold the underlying assets.
In conclusion, retail investors in the UK will soon have regulated access to crypto ETNs through FCA-approved exchanges beginning October 8, 2025. These ETNs will primarily track Bitcoin and Ethereum. Specific product names or issuers have not yet been publicly disclosed following the regulatory shift. Firms issuing these ETNs must adhere to strict FCA consumer protection rules. As always, investors should carefully consider the risks associated with crypto ETNs before investing.
- The Financial Conduct Authority (FCA) has introduced a significant shift in the UK's crypto regulation, allowing retail investors to trade regulated crypto exchange-traded notes (ETNs) from October 8, 2025, through FCA-approved Recognised Investment Exchanges (RIEs).
- Starting from October 8, 2025, only ETNs that comply with consumer protection regulations and are listed on FCA-approved RIEs will be available to UK retail investors.
- Products backed by major cryptocurrencies like Bitcoin and Ethereum will be available for retail investors in the UK, following the FCA's move to open up a previously restricted segment of the crypto market.
- Investors should carefully consider the risks associated with crypto ETNs before investing, as these ETNs remain high-risk products, explicitly regulated by the FCA.
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