UK to Open Retail Access to Crypto ETNs from October 2025 in Policy Shift

Retail investors in the United Kingdom will gain access to crypto exchange-traded notes (cETNs) starting October 8, 2025, marking a policy shift by the Financial Conduct Authority (FCA) [1]. These products, which are debt instruments tied to the performance of cryptoassets without direct custody of the underlying assets, must be listed on FCA-approved UK-based investment exchanges known as Recognized Investment Exchanges (RIEs) [2]. The FCA has emphasized that all promotional and marketing activities related to cETNs must comply with its financial promotion rules and broader Consumer Duty requirements, underscoring the need for clear and fair treatment of retail clients [3].

The FCA’s Handbook Notice No 132 outlines changes to its regulatory framework to enable the sale, distribution, and marketing of cETNs to retail investors [4]. This development follows an earlier move in March 2024 when the regulator began permitting professional investors to access cETNs listed on UK exchanges, including those on the London Stock Exchange [5]. The decision reflects the FCA’s recognition of market evolution since previous restrictions were imposed, and its aim to balance investor protection with access to innovative financial products [6].

Prior to this move, the FCA maintained a retail ban on cETNs to shield retail investors from the risks associated with crypto markets, including volatility and potential mis-selling [7]. With the new rules in place, investors must be informed about the nature and risks of cETNs, with the FCA ensuring that firms meet the standards under the Consumer Duty to act in clients’ best interests [2]. The requirement to operate on FCA-recognised platforms adds an additional layer of oversight, as these exchanges are subject to stringent regulatory compliance measures [1].

The lifting of the retail ban aligns with broader efforts to enhance the UK’s position in the crypto financial services sector, particularly in light of global competition from other jurisdictions [5]. However, the FCA has not indicated any changes to its existing restrictions on retail access to crypto derivatives or unregulated products, maintaining a cautious stance on higher-risk crypto instruments [7]. This measured approach suggests that the regulator is aiming to foster innovation while preserving investor confidence and market integrity [6].

Source:

[1] UK Regulator to Allow Retail Investors Access to Crypto ETNs in October (https://www.coindesk.com/policy/2025/08/03/uk-regulator-to-allow-retail-investors-access-to-crypto-etns-in-october)

[2] UK financial regulator to open retail access to crypto ETNs (https://www.theblock.co/post/365245/uk-crypto-etns-retail)

[3] UK Lifts Retail Ban on Crypto ETNs from October 2025 (https://www.ainvest.com/news/uk-lifts-retail-ban-crypto-etns-october-2025-2508/)

[4] Handbook Notice No 132 (https://www.fca.org.uk/publication/handbook/handbook-notice-132.pdf)

[5] FCA to Unlock Crypto ETNs for UK Retail Investors in Major Policy Shift (https://coinstats.app/news/34b474ac1339dc068d9d703046120ae77412a3f400653338e719ca6fb6bbe4d3_FCA-to-Unlock-Crypto-ETNs-for-UK-Retail-Investors-in-Major-Policy-Shift/)

[6] UK greenlights retail access to crypto ETNs in subdued policy U-turn (https://crypto.news/uk-greenlights-retail-access-to-crypto-etns-in-subdued-policy-u-turn/)

[7] UK FCA Lifts Retail Ban on Crypto ETNs by October 2025 (https://coinedition.com/uk-fca-lifts-crypto-etn-ban-coinbase-campaign/)