UK investors may soon gain access to low-cost, ETF-style crypto funds, as the Financial Conduct Authority (FCA) considers lifting its longstanding ban on crypto exchange-traded notes (ETNs) for retail buyers.
ETNs are similar to exchange-traded funds (ETFs), which many investors already use. Like ETFs, they track the performance of an index, such as the FTSE 100. However, while ETFs are investment funds that hold underlying assets, ETNs are debt instruments issued by financial institutions, promising to deliver returns that mirror a specific index or asset—such as Bitcoin.
The FCA originally imposed the ban in 2019, restricting UK retail investors from accessing both crypto derivatives and ETNs, citing concerns about volatility, investor protection, and what it described as an “inadequate understanding” of crypto assets.
Since then, Bitcoin ETFs have gained traction in the US, offering mainstream exposure to crypto via regulated platforms. In the UK, however, retail investors remain locked out of such products and can only buy crypto directly through unregulated platforms.
If approved, the FCA’s move could mark a significant shift in the UK’s stance on crypto investment and open up new, regulated pathways for retail investors to gain exposure to digital assets.
The Financial Conduct Authority (FCA), which lifted its ban on crypto ETNs for professional investors last year, said on Friday it was now considering extending access to retail buyers via approved investment exchanges.
Citing the availability of similar products in other jurisdictions, the regulator launched a consultation on overturning the retail ban. The move forms part of wider plans to develop a formal regulatory framework for digital assets in the UK.
While the FCA’s proposals would maintain the existing ban on crypto derivatives, issuers of crypto ETNs would be subject to strict financial promotion rules. They would be required to clearly inform investors of the risks involved—and would be barred from offering “inappropriate incentives to invest.”
“This consultation demonstrates our commitment to supporting the growth and competitiveness of the UK’s crypto industry,” said David Geale, the FCA’s executive director of payments and digital assets. “We want to rebalance our approach to risk, and lifting the ban would allow people to make the choice on whether such a high-risk investment is right for them, given they could lose all their money.”
