UK brokers will soon be able to give retail consumers access to crypto exchange traded notes (cETNs), under changes announced by the FCA, Britain’s financial regulator.
The crypto ETNs that retail consumers can access must be traded on an FCA-approved, UK-based investment exchange (a Recognised Investment Exchange or RIE). Financial promotion rules will apply so consumers get the right information and aren’t offered inappropriate incentives to invest.
Why crypto ETPs are good news for investors
By accessing crypto through ETPs, retail investors can now engage with crypto in a safer, more transparent environment. This reduces the risks of unregulated platforms. There was increasing evidence that more UK investors were turning to offshore crypto exchanges to buy popular coins.
By offering digital assets through the familiar ETP structure, these products make it easier for investors to evaluate and manage crypto within the context of their broader portfolios, in turn supporting more informed decision-making in pursuit of long-term investment goals.
- Revolut’s elusive UK banking license
- SEC opens the door for digital assets ETFs
- A safer route into the cryptocurrency maze
While these products remain subject to the FCA’s mass market restriction, Friday’s move lays important groundwork for broader retail engagement under a regulatory framework.
In January 2021, the FCA banned the sale, marketing and distribution of derivatives and ETNs that reference unregulated transferable cryptoassets to retail clients. In March of last year the FCA announced it would not object to requests from recognised investment exchanges (such as the London Stock Exchange) to create a UK listed market segment for cryptoasset-backed exchange traded notes (cETNs) for professional investors.
Donald Trump has changed the tune for crypto
Rapid liberalisation of the crypto assets regime in the US, following the election of Donald Trump, has also played a role in regulatory decision-making. There was also a feeling among brokers and fund managers in London that the UK was out of step with the European treatment of crypto ETNs. Major European markets were seeing a rapid expansion in these products in 2024-25.
David Geale, executive director of payments and digital finance at the FCA, said:
“Since we restricted retail access to cETNs, the market has evolved, and products have become more mainstream and better understood. In light of this, we’re providing consumers with more choice, while ensuring there are protections in place. This should mean people get the information they need to assess whether the level of risk is right for them.”
The Consumer Duty will apply to firms offering these products to retail investors. However, there won’t be coverage from the Financial Services Compensation Scheme (FSCS)Link is external. Consumers should ensure they understand the risks before deciding to invest.
This is the latest development as the FCA continues to establish a regulatory framework for crypto. The regulator has outlined its crypto roadmap and recently published proposals on stablecoins as well as other aspects of the regime.
“The FCA’s decision to permit retail access to UK-listed crypto exchange-traded products, effective from 8 October, marks a pivotal moment in the broader integration of digital assets into the financial system,” said Dovile Silenskyte, Director, Digital Assets Research, at WisdomTree. “It reflects a more mature ecosystem, strengthened by institutional involvement, clearer regulation, and the proven success of bitcoin ETPs in the US.”
The FCA’s ban on retail access to cryptoasset derivatives will remain in place, which means CFD and spread betting brokers will not be able to offer contracts based on crypto prices. The FCA said it will continue to monitor market developments and consider its approach to high-risk investments.
