FCA Opens Retail Access to Crypto ETNs
The UK's Financial Conduct Authority (FCA) has announced plans to lift its ban on retail investment in cryptocurrency exchange-traded notes (ETNs), marking a significant shift in its approach to digital assets. Previously restricted to professional investors since 2019, ETNs are debt instruments that track the value of cryptocurrencies like Bitcoin and Ethereum without requiring investors to own the underlying assets. The FCA's decision aims to foster industry competitiveness while allowing individuals to make informed choices regarding high-risk investments.
This move aligns with the UK government's broader efforts to regulate the crypto sector and position the country as a global leader in digital assets. In April 2025, draft legislation was introduced to bring cryptoassets under formal regulation, aiming to safeguard consumers and enhance market trust. The FCA's proposal to lift the ETN ban is currently under consultation until July 2025.
Despite this progressive step, the FCA will maintain its prohibition on retail trading of crypto derivatives, citing the high-risk nature of these products. The regulator emphasizes that while the market has matured, crypto investments remain high-risk and largely unregulated, advising investors to be prepared for the possibility of losing all their invested capital.
