The UK Financial Conduct Authority (FCA) has lifted its four-year ban on retail purchase of crypto exchange‑traded notes (ETNs), effective October 8, 2025, allowing access through recognized exchanges like the London Stock Exchange.
This regulatory change reflects evolving market maturity, potentially expanding the UK crypto market by up to 20%, as projected by IG Group, while offering new investment avenues for retail investors.
The UK Financial Conduct Authority (FCA) has officially lifted its ban on retail purchase of crypto exchange‑traded notes, effective October 8, 2025. This comes after a four‑year hiatus due to concerns about retail risk exposure.
Retail investors can now access BTC and ETH ETNs through FCA‑recognized exchanges like the London Stock Exchange. This regulatory change marks a significant evolution in market maturity and strengthens consumer options.
This policy shift is expected to significantly impact the UK crypto market, with potential expansions of up to 20 %. Companies like IG Group are poised to facilitate ETN offerings, driving new liquidity into regulated markets.
New tax treatments for crypto ETNs will apply within registered pension schemes and Stocks & Shares ISAs. This reflects growing government support for crypto sector innovation, with established vehicles now eligible for crypto investments.
Crypto ETNs are now viable investment vehicles for retail investors. Institutional‑grade products, fully‑backed by physical assets, are permitted, providing a new level of security and trust.
The FCA decision mirrors global trends, with increased inflows anticipated similar to those witnessed in the US upon Bitcoin ETF launches. BTC and ETH are expected to see significant activity in the UK's newly regulated markets. As David Geale, Executive Director of Payments and Digital Finance at the FCA, stated, “Since we restricted retail access to crypto ETNs, the market has evolved, and products have become more mainstream and better understood. In light of this, we're providing consumers with more choice, while ensuring there are protections in place” – FCA Press Release.