On October 8, 2025, the UK’s Financial Conduct Authority (FCA) will remove a four-year prohibition on retail access to exchange-traded notes (ETNs) referencing Bitcoin and Ethereum. The ban, originally imposed in 2021 amid concerns over extreme volatility, valuation complexity, and market abuse, prevented retail investors from purchasing ETNs based on cryptoassets through regulated platforms such as the London Stock Exchange.
ETNs are unsecured debt instruments issued by financial institutions that track the returns of an underlying asset or index. Unlike exchange-traded funds (ETFs), ETNs carry credit risk tied to the issuer, but offer a straightforward way for investors to gain market exposure without directly holding the asset. The FCA’s reversal will permit issuance and distribution of ETNs referencing Bitcoin or Ethereum, subject to stringent listing, disclosure, and distribution requirements.
Proponents argue that the decision represents progress toward regulated inclusion of digital assets in mainstream finance. “Lifting the ETN restriction is a welcome step in the right direction,” said Susie Violet Ward, CEO of Bitcoin Policy UK. “It demonstrates the FCA’s willingness to adapt to innovation while maintaining consumer safeguards.”
Critics, however, label the move a symbolic gesture. They note that ETNs remain debt products rather than spot-backed instruments, and that retail investors still cannot directly purchase or custody cryptocurrencies through regulated channels. “An ETN is an odd proxy for real crypto exposure,” said a London-based asset manager. “Spot ETFs or direct custody solutions would offer clearer, more transparent market access.”
The FCA’s decision follows extensive market consultation and pressure from industry groups calling for a more competitive regulatory framework. The regulator emphasized that new ETNs must meet rigorous standards, including issuer credit quality, collateral segregation, regular audits, and tailored investor disclosures to highlight product risks and mechanics.
Market participants anticipate that several major issuers will file prospectuses for Bitcoin and Ethereum ETNs within weeks. If approved, these products could attract inflows from retail segments previously sidelined, complementing the growth of professionally managed institutional offerings. Local brokerages and digital wealth platforms are preparing to onboard ETN products, integrating crypto exposure into existing investment propositions.
Globally, crypto-linked exchange products have proliferated, with the United States and Europe approving multiple spot Bitcoin and Ether ETFs in 2025. The UK’s late-entry into this market segment reflects cautious oversight, but also underscores its ambition to maintain London’s status as a leading financial center responsive to digital innovation.
Looking ahead, stakeholders expect the FCA to evaluate additional crypto products, including derivatives and trading venues, to support market integrity and consumer protection. “Regulated ETNs are just one piece of the puzzle,” said a City of London spokesperson. “Our focus remains on balanced innovation that fosters growth while safeguarding investors.”
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