UK to open retail access to crypto ETNs on October 8

The UK Financial Conduct Authority (FCA) has announced the removal of its four-year retail ban on crypto exchange-traded notes (cETNs), which will take effect on October 8, 2025. The decision reflects the FCA’s assessment that the market for these products has matured, with improved understanding and broader acceptance among retail investors. This regulatory easing aims to offer greater investment choice while maintaining necessary safeguards [1].

The original restriction on retail access to cETNs and crypto derivatives was introduced in 2021, primarily due to concerns over market volatility and the potential risks to non-professional investors. Over the past four years, the FCA has observed that these instruments have become more mainstream and are now better understood by the general investing public [2]. This shift aligns with broader global regulatory trends, as markets in the US, Canada, and parts of the EU have already permitted similar products for retail investors [3].

David Geale, Executive Director of Payments and Digital Finance at the FCA, highlighted that the regulator has struck a balance between investor access and protection. “Since we restricted retail access to cETNs, the market has evolved, and products have become more mainstream and better understood,” he stated. “In light of this, we’re providing consumers with more choice, while ensuring there are protections in place” [4].

Under the new framework, cETNs will be listed on Recognized Investment Exchanges (RIEs) approved by the FCA. These products are structured as debt securities, with returns adjusted for fees and expenses. Unlike spot crypto ETFs, which directly hold the underlying cryptoassets, cETNs offer indirect exposure and are issued by financial institutions [5]. Retail investors will still not have access to high-risk derivatives like crypto futures or options, which the FCA continues to deem unsuitable for non-professional traders [6].

The FCA has emphasized the importance of investor education and transparency. Firms offering cETNs must comply with the Consumer Duty framework, ensuring fair treatment of clients. However, these products will not be protected by the Financial Services Compensation Scheme, meaning investors will bear the full risk in the event of an issuer’s insolvency [7].

The regulatory change is expected to boost participation in crypto investments among UK retail investors and could increase trading volumes on UK exchanges. It also underscores the FCA’s ongoing efforts to adapt its framework to the evolving digital asset landscape, while maintaining a focus on consumer protection. The outcome of this decision may influence similar policy considerations in other jurisdictions as global regulators continue to refine their approaches to crypto-related financial instruments [8].

Source:

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

[2] UK to Lift 4-Year Retail Ban on Crypto ETNs (https://cryptorank.io/news/feed/01c8d-fca-to-reopen-retail-access-to-crypto-etns-from-october-8)

[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 Announces Plans to Grant Retail Access to Crypto (https://bitcoinist.com/fca-retail-access-to-crypto-exchange-traded-notes/)

[5] UK Retail Investors Gain Access to Crypto ETNs From (https://www.ainvest.com/news/uk-retail-investors-gain-access-crypto-etns-october-8-2025-fca-rules-2508/)

[6] Bitcoin ETFs on the way to the UK, as FCA finally relaxes (https://www.thisismoney.co.uk/money/crypto/article-14962913/FCA-allow-retail-investors-trade-crypto-exchange-traded-notes.html)

[8] UK to lift crypto ETN ban for retail traders on October 8 (https://ambcrypto.com/uk-to-lift-crypto-etn-ban-for-retail-traders-on-october-8-details/)