The UK’s Financial Conduct Authority (FCA) has lifted its long-standing ban on retail access to cryptocurrency exchange traded notes (ETNs), marking a pivotal regulatory shift that industry leaders are calling a transformative moment for the digital asset market.
Effective from October 8, retail investors in the UK will be allowed to purchase regulated, exchange-listed products that track popular digital tokens like bitcoin and ether. This move offers a safer, FCA-recognized alternative to direct trading on unregulated crypto exchanges.
Russell Barlow, CEO of 21Shares, one of the issuers of crypto ETNs, compared the development to the “Big Bang” reforms of the 1980s, which reshaped London’s financial sector. “This is extremely significant,” Barlow said. “It represents a seismic shift in the UK’s financial markets and reflects growing acceptance of digital assets.”
Dovile Silenskyte, Director of Digital Assets Research at WisdomTree, echoed the sentiment, stating, “The end of the UK’s retail ban marks a pivotal moment in integrating digital assets into the broader financial system.”
The FCA had previously restricted ETNs to institutional investors, citing concerns over market volatility and fraud. In March 2024, the regulator allowed crypto ETNs to list on the London Stock Exchange but maintained the retail ban. Now, with the retail access window open, the FCA notes the crypto market has evolved and become better understood by the public.
“Since we restricted retail access, the market has matured. We’re now offering consumers more choice,” said David Geale, FCA Executive Director of Payments and Digital Finance.
Surge in Crypto Investment Products
With the rule change, UK investors will gain access to 17 crypto ETNs listed on the London Stock Exchange. These products have been issued by major firms such as Fidelity, Invesco, WisdomTree, and Global X, alongside crypto-focused asset managers like 21Shares, CoinShares, and Bitwise.
US-based investment firm VanEck has confirmed it is in discussions to launch its own crypto ETN in the UK. Meanwhile, UK investment platforms such as AJ Bell and InvestEngine are actively assessing the new regulatory framework, suggesting broader market integration is on the horizon.
Although this marks a leap forward for UK investors, the country still lags behind continental Europe, which offers 249 crypto exchange-traded products, including leveraged and altcoin-tracking instruments. Currently, UK-listed ETNs are limited to bitcoin and ether.
The FCA has made it clear that its ban on crypto derivatives remains in place, and more complex or high-leverage crypto products will remain off-limits to retail customers.
Growing Retail Interest
According to Treasury data, approximately 12% of UK adults have invested in or held cryptocurrencies. Industry players hope this latest regulatory easing will further legitimize crypto as an asset class for moderate-risk portfolios.
Barlow, who previously led Aberdeen’s multi-asset business, believes that crypto deserves a place in diversified portfolios. “For investors with moderate risk tolerance, around 5% exposure to crypto can be justified,” he said, expressing optimism that the FCA may eventually approve ETNs linked to a wider range of digital assets.
Meanwhile, the US market for crypto exchange traded funds (ETFs) has ballooned to over $180 billion, and Europe’s regulatory openness continues to outpace that of the UK. However, this policy shift marks a major step in narrowing that gap and could usher in broader institutional and retail adoption in Britain.
