UK to Allow Retail Access to FCA-Approved Crypto ETNs by October 2025

The UK Financial Conduct Authority (FCA) is set to lift its ban on retail access to cryptocurrency exchange-traded notes (cETNs) by October 8, 2025, marking a significant shift in the country’s regulatory approach to digital assets [3]. This decision follows a consultation period initiated in June 2025 and reflects a growing recognition of the maturing crypto market. The FCA will permit cETNs only if they are listed on FCA-approved Recognised Investment Exchanges (RIEs), such as the London Stock Exchange [1]. However, the products will not be protected by the Financial Services Compensation Scheme (FSCS), leaving investors to bear the full financial risk [3].

The FCA has emphasized that financial promotion rules will apply to prevent misleading marketing and ensure that investors are fully informed of the risks involved [1]. This move is part of a broader effort to establish a clearer regulatory framework for crypto products, balancing innovation with investor protection. Despite the relaxation for cETNs, the FCA maintains its 2021 retail ban on crypto derivatives, citing concerns over volatility and market manipulation [3].

The regulatory change aligns with a global trend of reconsidering crypto investment structures. With over $43 billion raised by 98 firms in 2024 and 2025 for crypto-related investments, there is evident demand for regulated investment vehicles [5]. The FCA’s decision could help bridge the gap between retail appetite and institutional-grade crypto products, potentially increasing trading volumes on approved exchanges [5]. Analysts suggest that enhanced disclosure requirements may contribute to a more stable retail market, while restricted access ensures controlled exposure [3].

Key market figures highlight the relevance of this regulatory shift. Bitcoin (BTC) remains the dominant asset, with a market value of $115,232.71, a 61.13% market dominance, and a 30-day gain of 7.19% as of August 1, 2025 [3]. The broader market context underscores the FCA’s decision to open retail access to cETNs as a strategic move to align with global standards while maintaining risk management protocols [1].

The FCA’s approach reflects a careful balance between fostering innovation and protecting retail investors. The application of the Consumer Duty framework ensures that firms offering cETNs act in the best interest of their clients [3]. This regulatory evolution is expected to encourage the development of more structured crypto investment vehicles, potentially enhancing competition and choice for UK retail investors.

This change aligns with the FCA’s ongoing efforts to position the UK as a competitive hub for financial innovation, particularly as other jurisdictions explore crypto-friendly regulations [6]. The decision is a clear signal that the UK is adapting to the rapidly evolving crypto landscape, while still maintaining caution regarding the inherent risks of digital assets.

Source:

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

[2] Mondo – [https://mondovisione.com/media-and-resources/news/uk-financial-conduct-authority-opens-retail-access-to-crypto-etns-202581/](https://mondovisione.com/media-and-resources/news/uk-financial-conduct-authority-opens-retail-access-to-crypto-etns-202581/)

[3] FX – [https://fxnewsgroup.com/forex-news/cryptocurrency/fca-to-open-retail-access-to-crypto-etns/](https://fxnewsgroup.com/forex-news/cryptocurrency/fca-to-open-retail-access-to-crypto-etns/)

[4] AInvest – [https://www.ainvest.com/news/uk-retail-crypto-etn-trading-october-2025-fca-rules-2508/](https://www.ainvest.com/news/uk-retail-crypto-etn-trading-october-2025-fca-rules-2508/)

[5] Blockchain – [https://www.blockchain-council.org/cryptocurrency/98-firms-raise-43b-for-crypto-investments/](https://www.blockchain-council.org/cryptocurrency/98-firms-raise-43b-for-crypto-investments/)

[6] FF – [https://ffnews.com/companies/fca-financial-conduct-authority/](https://ffnews.com/companies/fca-financial-conduct-authority/)