FCA Considers Opening Crypto ETNs to UK Retail Investors

Retail investors in the UK may soon gain access to crypto exchange-traded notes (ETNs), as the Financial Conduct Authority weighs reversing a three-year ban.

The potential policy shift would allow individuals—not just institutions—to invest in crypto-linked ETNs listed on approved UK exchanges.

This reconsideration comes as part of the FCA’s latest consultation aimed at boosting market competitiveness and easing regulatory burdens. While retail investors have long been excluded from these products due to risk concerns, the regulator now appears more willing to let individuals decide for themselves—provided safeguards are in place.

Unlike spot ETFs, ETNs don’t hold cryptocurrencies directly. Instead, they are unsecured debt instruments tied to asset performance. Their expansion to retail markets would bring the UK in line with jurisdictions like the U.S. and EU, where such products are already more accessible.

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Kraken UK’s General Manager, Bivu Das, called the proposal a turning point, arguing that the market has matured beyond the need for blanket restrictions. Kraken, one of the largest FCA-registered platforms, believes broader access must come with robust investor education and clear disclosures.

Although crypto ETNs were allowed for institutional trading in the UK earlier this year, they saw limited adoption. Broader availability could change that. However, the FCA emphasized that its retail derivatives ban will remain, and any new rules will come with strict financial promotion standards to ensure consumer protection.

Comprehensive legislation covering stablecoins, staking, and custody remains under development, with full rollout expected by 2026. While no date has been given for a final decision, the FCA’s latest move signals growing openness to integrating crypto into the mainstream investment landscape.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.