Nikolas Sargeant
The United Kingdom's Financial Conduct Authority has officially lifted its ban on crypto ETNs, reopening access for retail investors to Bitcoin and Ethereum Exchange-Traded Notes as of October 8, 2025. The FCA has clarified that it is allowing retail trading of crypto exchange-traded notes, not ETFs, on UK exchanges. According to new research from IG Group, the UK crypto market could grow by as much as 20% following the introduction of retail-accessible ETNs. This marks the end of a four-year prohibition that had prevented ordinary UK investors from accessing these regulated crypto investment products.
The restriction was partially eased in 2024, when professional investors gained access to ETNs backed by bitcoin and ether, with that access expanding further in June 2025 when the FCA began consulting on lifting the retail ban. Professional investors were able to buy crypto ETNs in May 2024 and this access is being widened to retail investors, provided the ETNs are traded on a regulated, recognized exchange like the London Stock Exchange. IG Group's research found that 30% of UK adults would consider investing in crypto via ETNs, suggesting significant pent-up demand for these products.
ETNs allow investors to gain exposure to bitcoin through regulated markets without taking custody of the underlying crypto. Unlike exchange-traded funds, which are still banned in the UK for retail investors, ETNs represent debt instruments that track cryptocurrency prices. However, the products won't be covered by the Financial Services Compensation Scheme, which protects consumers when firms fail. Major asset managers including 21Shares, WisdomTree, and VanEck are reportedly eyeing UK listings for their crypto ETN products now that the retail ban has been lifted.
The regulatory shift represents a significant milestone for the UK's digital asset market, potentially positioning London as a more competitive hub for cryptocurrency investment products. The lifting of the years-long retail ban is paving the way for further mainstream adoption of Bitcoin and other digital assets. With millions of UK retail investors now able to access crypto through regulated investment vehicles for the first time since early 2021, market participants are watching closely to see if the predicted 20% growth materializes in the coming months.
The ETN decision comes amid broader international cooperation on digital asset regulation, as top financial officials from the United States and United Kingdom have announced the formation of a joint task force aimed at developing coordinated policy recommendations for digital assets. The initiative, chaired by officials from HM Treasury and the US Treasury Department through the UK-US Financial Regulatory Working Group, will prioritize aligning crypto regulations, with particular focus on stablecoins and anti-money laundering standards. The task force has been given 180 days to deliver its findings and recommendations on digital asset cooperation to both finance ministries, signaling that the UK's approach to crypto regulation is part of a larger transatlantic strategy to establish harmonized frameworks for the rapidly evolving cryptocurrency market.
