Bitcoin News Today: UK to lift 4-year ban on crypto ETNs for retail investors October 8 2025

The United Kingdom is set to reintroduce access for retail investors to cryptocurrency-linked exchange-traded notes (cETNs) starting October 8, 2025, following regulatory updates from the Financial Conduct Authority (FCA) [1]. This decision reverses a multi-year ban imposed in 2021 to safeguard investors from the volatility and risks inherent in direct exposure to crypto assets. The FCA has outlined that cETNs will be available solely on regulated, FCA-approved platforms, ensuring that promotional activities are compliant and that investors receive clear, factual information [2].

The new rule allows retail investors to trade cETNs through compliant exchanges, offering them indirect exposure to cryptocurrencies without the necessity of owning the underlying digital assets [3]. However, the FCA has stressed that these products will not be covered by the Financial Services Compensation Scheme (FSCS), emphasizing the need for thorough risk evaluation and investor education before entering the market [4].

According to David Geale, the FCA’s executive director of payments and digital finance, the crypto product market has evolved significantly since the initial ban, with increased institutional participation and clearer regulatory guidance now in place [5]. Despite this development, the FCA reaffirmed that its current restrictions on retail access to cryptoasset derivatives remain unchanged. The regulator will continue to monitor the market to determine if further regulatory adjustments are necessary [6].

Dovile Silenskyte, director of digital assets research at WisdomTree, described the FCA’s decision as a pivotal step in integrating digital assets into the traditional financial ecosystem [7]. She noted that the move offers safer, more transparent investment avenues for retail investors while enabling them to assess and manage their crypto exposure within diversified investment strategies.

The resumption of cETN trading for retail investors reflects the FCA’s ongoing efforts to create a balanced regulatory environment for the crypto sector. These include recent proposals on stablecoins and other initiatives aimed at fostering innovation while maintaining investor protection [8].

Sources:

[1] UK lifts ban on crypto-linked notes for retail investors after 5 ... (https://finance.yahoo.com/news/uk-lifts-ban-crypto-linked-115532787.html)

[2] FCA opens retail access to crypto ETNs (https://www.fca.org.uk/news/press-releases/fca-opens-retail-access-crypto-etns)

[3] UK regulator lifts ban on crypto ETNs for retail investors (https://cointelegraph.com/news/uk-regulator-lifts-ban-on-crypto-etns-by-retail-investors)

[4] FCA clears crypto ETNs for UK retail investors, trading ... (https://www.msn.com/en-us/money/news/fca-clears-crypto-etns-for-uk-retail-investors-trading-resumes-october-2025/ar-AA1JK4gy)

[5] FCA Opens the Door to Crypto ETNs for UK Retail Investors (https://99bitcoins.com/news/bitcoin-btc/fca-opens-the-door-to-crypto-etns-for-uk-retail-investors/)

[6] FCA Opens Retail Access to Crypto ETNs (https://www.marketsmedia.com/fca-opens-retail-access-to-crypto-etns/)

[7] Bitcoin News Today: UK to lift four-year crypto ETN retail ... (https://www.ainvest.com/news/bitcoin-news-today-uk-lift-year-crypto-etn-retail-ban-october-8-2025-2508/)

[8] FCA to Allow Retail Investors to Gain Access to Crypto ... (https://www.financemagnates.com/cryptocurrency/fca-to-allow-retail-investors-to-gain-access-to-crypto-etns-starting-october/)