Bitcoin News Today: UK Unveils Crypto ETN Access, But Critics Say It's Too Little, Too Late

The UK Financial Conduct Authority (FCA) has lifted a four-year ban on crypto exchange-traded notes (ETNs) for retail investors, effective October 8, 2025, marking a significant shift in the UK's regulatory approach to digital assets. The move, announced on October 9, 2025, allows retail investors to access crypto ETNs via FCA-approved exchanges such as the London Stock Exchange and Cboe UK. These debt instruments enable investors to gain exposure to cryptocurrencies like Bitcoin and Ethereum without direct ownership, with underlying assets held by regulated custodians. David Geale, FCA's Executive Director of Payments and Digital Finance, stated the decision reflects "the evolution of the market" and aims to provide consumers with "more choice while ensuring protections are in place".

The ban, imposed in January 2021, cited risks to retail investors, including volatility and a lack of "legitimate investment need". Critics argue the restriction pushed UK investors toward unregulated offshore platforms or direct crypto purchases, while global competitors like the EU and US advanced crypto-linked products. The EU approved crypto ETNs as early as 2021, and the US greenlit spot Bitcoin ETFs in January 2024, creating a regulatory gap that the UK is now addressing.

The FCA's decision includes tax incentives for crypto ETNs, allowing them to be held in registered pension schemes from October 8, 2025, and in Stocks & Shares Individual Savings Accounts (ISAs) from April 2026. This tax-advantaged access is expected to attract retail investors seeking regulated exposure to cryptoassets. Research by IG Group suggests the UK crypto market could grow by up to 20% post-ban, driven by 30% of UK adults considering crypto ETNs due to their perceived safety and regulatory oversight. Current crypto ownership in the UK ranges between 12% and 25%, according to FCA and IG studies.

Despite the progress, the FCA maintains a ban on retail access to crypto derivatives such as futures and options, citing ongoing consumer protection concerns. Experts like Susie Violet Ward of Bitcoin Policy UK note that ETNs, as debt instruments, differ from spot Bitcoin ETFs, which hold the underlying asset. "Reopening the door through a credit-linked product rather than one backed by the asset itself is an odd choice," she said. The FCA's cautious approach has drawn criticism for delaying UK's entry into a rapidly evolving market.

The rollout has faced operational delays, with London Stock Exchange and FCA finalizing implementation details, potentially pushing initial listings to October 13 or later. Industry stakeholders, including 21Shares and WisdomTree, are preparing Bitcoin and Ethereum ETNs for retail access, signaling optimism about pent-up demand. However, UK's crypto ETN trading volume remains a fraction of European activity, averaging £624,000 daily compared to €26 billion in 2024.

The FCA's reversal aligns with broader efforts to establish a regulatory framework for cryptoassets, including proposals on stablecoins and custody requirements. While the decision is framed as a step toward innovation, it underscores the UK's delayed response to global trends. Analysts suggest the next milestone will be allowing crypto ETNs within ISAs, which could drive mass adoption through tax advantages.

[1] The Crypto Times (https://www.cryptotimes.io/2025/10/09/uk-lifts-four-year-ban-on-crypto-etns-for-retail-investors/)

[2] 99Bitcoins (https://99bitcoins.com/news/altcoins/too-late-uk-lifts-4-year-etn-ban-fca-regulators-missed-generational-starting-gun/)

[3] Cointelegraph (https://cointelegraph.com/news/uk-lifts-ban-crypto-exchange-traded-notes)

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

[5] CryptoNews (https://cryptonews.com/news/fca-lifts-etn-ban-but-uk-retail-investors-still-waiting-for-market-access/)

[8] Morningstar (https://global.morningstar.com/en-gb/markets/bitcoin-hits-record-high-uk-investors-gain-access-crypto-etns)

[9] FCA (https://www.fca.org.uk/news/press-releases/fca-lift-ban-crypto-exchange-traded-notes)