Financial Regulatory Authority Expands Crypto Exchange-Traded Notes Offerings to Retail Investors
The UK Financial Conduct Authority (FCA) has announced a significant change in its regulations, allowing retail investors to access crypto exchange-traded notes (ETNs) listed on UK-based investment exchanges starting October 8, 2025 [1][3]. This decision marks the end of a ban that was imposed in January 2021.
With this change, retail investors can now buy ETNs that track the prices of popular cryptoassets such as Bitcoin and Ethereum, but only those ETNs listed on approved UK exchanges and offered by firms that comply fully with the FCA's Consumer Duty obligations [1][4]. These obligations include clear financial promotions, suitability checks, and transparent risk disclosures.
The FCA's decision comes as a result of the maturity of the crypto market and the belief that there are now sufficient safeguards to permit retail access, while still prohibiting retail investors from trading in crypto derivatives [1][2][4]. It's important to note that this allowance does not extend to derivatives or other crypto products beyond ETNs [2][4].
Investors should be aware that there is no protection from the Financial Services Compensation Scheme for these products, underscoring the need for caution when investing [1]. Issuers must adhere to strict regulatory standards to ensure consumer protection as part of this new framework [1].
This regulatory shift aligns the UK more closely with international regulatory trends, reflecting increased confidence in market robustness and investor protections while maintaining a cautious stance toward riskier crypto derivatives [2][5].
In summary, from October 8, 2025, UK retail investors will be able to buy crypto ETNs listed on recognised UK exchanges under a regulated framework that emphasizes consumer duty, risk transparency, and the exclusion of derivatives, but lacks compensation scheme coverage [1][2][3][4]. This decision is a pivotal moment in the broader integration of digital assets into the financial system, laying important groundwork for broader retail engagement under a regulatory framework [6][7].
[1] Financial Conduct Authority. (2025). Retail access to crypto ETNs. Retrieved from https://www.fca.org.uk/news/statements/retail-access-crypto-etns [2] Financial Conduct Authority. (2025). Cryptoassets: policy statement PS25/16. Retrieved from https://www.fca.org.uk/publications/policy-statements/ps25-16 [3] Financial Conduct Authority. (2021). Retail ban on crypto derivatives. Retrieved from https://www.fca.org.uk/news/statements/retail-ban-crypto-derivatives [4] Financial Conduct Authority. (2025). Consumer Duty. Retrieved from https://www.fca.org.uk/firms/understanding-rules/consumer-duty [5] Financial Conduct Authority. (2023). Cryptoassets: regulatory framework. Retrieved from https://www.fca.org.uk/firms/regulatory-frameworks/cryptoassets [6] WisdomTree. (2025). FCA allows retail access to UK-listed crypto ETPs. Retrieved from https://www.wisdomtree.com/uk/en/news/2025/fca-allows-retail-access-to-uk-listed-crypto-etps [7] Financial Conduct Authority. (2024). Stablecoins: proposals for regulation. Retrieved from https://www.fca.org.uk/publications/consultation-papers/cp24-27
- The UK Financial Conduct Authority (FCA) has decided to include crypto exchange-traded notes (ETNs) in its regulation, effective from October 8, 2025, thereby allowing retail investors to invest in digital assets like Bitcoin and Ethereum, but only through approved UK exchanges and compliant firms.
- The regulatory change permits the trading of crypto ETNs, but strictly prohibits retail investors from involvement in crypto derivatives, as part of an effort to maintain investor protections and market robustness.
- As the UK aligns its regulations with international trends, it continues to uphold a cautious stance towards riskier derivatives while adopting a regulated framework for digital assets investing, emphasizing consumer duty, risk transparency, and exclusion of derivatives, although without Financial Services Compensation Scheme coverage.
