UK FCA Lifts Ban on Crypto ETNs, Opens ISA & Pension Access
The UK Financial Conduct Authority (FCA) has lifted its ban on retail crypto ETNs, allowing individuals to trade Bitcoin (BTC) and Ether (ETH) exchange-traded notes on FCA-regulated platforms. Fully backed by underlying assets and listed on the London Stock Exchange, these crypto ETNs can now be held tax-free in Stocks & Shares ISAs and registered pension schemes. From October 2025, they qualify for pension plans; from April 6, 2026, they gain Innovative Finance ISA status while preserving tax benefits. Major providers such as IG, AJ Bell and Hargreaves Lansdown are updating their platforms for a phased rollout. In the US, Representative Bryan Steil confirms the CLARITY Act—passed by the House in July and awaiting Senate approval—remains on track despite the federal shutdown. Analysts forecast up to 20% growth in the UK crypto sector as 30% of adults express interest in regulated crypto ETNs. Traders should monitor FCA risk controls and US regulatory developments for new market opportunities.
Bullish
In the short term, opening regulated crypto ETNs to retail investors and offering tax-efficient vehicles via ISAs and pensions is likely to boost demand for BTC and ETH notes, supporting price momentum. Phased platform rollouts by major brokers will gradually expand access. Over the long term, FCA approval and potential US CLARITY Act progress will enhance regulatory clarity, lower barriers to entry, and attract a broader investor base. Analysts’ growth forecasts and rising public interest underline the upside potential, making the overall outlook for these digital assets bullish.