UK’s FCA Greenlights Crypto ETNs for Retail Investors Starting October

In a major policy reversal, the UK’s Financial Conduct Authority (FCA) has announced that retail investors will soon be allowed to purchase crypto exchange-traded notes (cETNs).

The rule change will take effect in October 2025 and marks a pivotal step toward expanding regulated access to digital assets in the UK.

According to the FCA’s August 1 statement, cETNs available to retail clients must be listed on an FCA-approved Recognised Investment Exchange (RIE). Financial promotion rules will apply to ensure consumers receive appropriate disclosures and are not misled by promotional materials. However, cETNs will not be covered by the Financial Services Compensation Scheme (FSCS), meaning consumers must fully assess their risk tolerance before investing.

David Geale, FCA’s Director of Payments and Digital Finance, said the decision reflects how the market has evolved since cETNs were initially banned in 2021. “Products have become more mainstream and better understood,” he noted, adding that the updated policy aims to provide consumers with more choice while safeguarding against inappropriate offerings.

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The announcement follows the FCA’s recent June 2025 consultation on lifting the retail ban. It also aligns with broader regulatory reforms, including the UK’s crypto roadmap and proposals on stablecoin oversight. The FCA made clear, however, that its ban on retail access to cryptoasset derivatives—like perpetuals or leveraged tokens—will remain in place for now.

With the change, the UK joins other global financial hubs in cautiously expanding regulated crypto market access to retail clients. As attention grows around digital asset integration, this move may open new doors for both retail participants and compliant crypto issuers across the country.