UK to Allow Retail Investors Access to Crypto-Backed ETNs from October 8 2025

Following a historic regulatory shift in the United States, the United Kingdom has also taken a significant step in the cryptocurrency space. The UK Financial Conduct Authority (FCA) has announced that it will grant retail investors access to crypto-backed exchange-traded notes (ETNs) starting October 8, 2025 [1]. This move marks a reversal of prior restrictions and reflects the FCA’s evolving stance on digital assets, as it acknowledges the increasing availability and better understanding of these products in the market.

The new access, however, is not without limitations. Investors will only be permitted to trade products listed on FCA-approved, UK-based recognized investment exchanges (RIEs). Additionally, the existing restrictions on crypto derivatives remain unchanged, meaning that these more complex and volatile instruments will still be inaccessible to most retail investors [1]. The FCA’s decision thus aims to strike a balance between expanding choice and maintaining regulatory safeguards.

The FCA has also made it clear that investors in these crypto-backed ETNs will not be covered under the Financial Services Compensation Scheme (FSCS), the UK government-backed insurance that protects investors in the event of a firm’s failure [1]. This signals that investors will bear greater individual responsibility for their decisions, with no safety net in case of losses. In addition, promotional materials for these products will be subject to financial promotion rules to prevent misleading or unsuitable incentives from being offered to consumers [1].

David Geale, executive director of the FCA’s payment systems and digital finance unit, stated that the move reflects the maturation of the crypto ETN market since previous restrictions were imposed. The FCA believes that investors now have better access to information and understanding of the risks involved, enabling them to make more informed decisions [1]. The new framework also mandates that companies offering these products must comply with Consumer Duty rules, which require them to act in the best interests of their clients and ensure that products are suitable for their needs [1].

The FCA’s approach suggests a cautious but open-minded stance toward crypto products. Rather than outright bans or rapid liberalization, the regulator is adopting a measured strategy that allows market growth while maintaining investor protection. This aligns with a broader trend in global markets, where regulatory bodies are increasingly seeking to adapt to the evolving nature of digital assets.

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[1] https://coinmarketcap.com/community/articles/688cd06b74a84a6cd5f01ed5/