UK FCA to Allow Retail Crypto ETN Investments From October 2025

The UK Financial Conduct Authority (FCA) has announced that starting October 8, 2025, retail investors will be permitted to invest in crypto exchange-traded notes (cETNs), marking a shift in the UK’s regulatory approach to cryptocurrency-linked products. This decision follows several years of restrictions and reflects the regulator’s assessment that the market and investor awareness have matured [1].

The move is conditional. cETNs will only be available on UK investment exchanges authorized by the FCA, and all marketing and distribution must comply with existing financial promotion rules. These measures aim to ensure transparency and allow investors to make informed decisions while preventing misleading or aggressive marketing practices [1].

David Geale, FCA Executive Director of Payments and Digital Finance, emphasized that the decision aligns with evolving market conditions and seeks to balance investor choice with strong protections. He noted that while crypto investments offer opportunities, they also carry significant risks [1].

It is important to highlight that cETNs will not be covered by the Financial Services Compensation Scheme (FSCS), meaning investors will not be eligible for compensation in the event of a provider’s failure. This underscores the need for investors to fully understand the risks involved before committing capital [1].

The FCA has maintained a broader ban on cryptoasset derivatives for retail clients, stating that these products remain too complex and volatile for the average investor. Nevertheless, the regulator has committed to monitoring market developments closely and adapting regulations accordingly [1].

This announcement follows the FCA’s March 2024 approval of crypto-backed cETNs for professional investors, enabling UK exchanges like the London Stock Exchange to list such products. The June 2025 consultation on lifting the retail ban paved the way for this decision and signals a gradual but cautious integration of crypto into regulated financial markets [1].

The FCA’s broader crypto roadmap includes proposals related to stablecoins and digital finance tools, reflecting a commitment to modernizing financial regulation while fostering innovation. However, investment exchanges offering cETNs must meet strict regulatory standards, ensuring investor protections comparable to traditional financial instruments [1].

While the decision opens new investment avenues for UK retail investors, it continues to emphasize a measured, regulated approach to digital assets.

Source: [1] UK FCA to Open Retail Access to Crypto ETNs Starting October 2025

https://www.livebitcoinnews.com/uk-fca-tcrypto-etns-starting-october-2025o-open-retail-access-to/