FCA to Permit UK Retail Crypto ETN Trading Oct 2025
The UK’s Financial Conduct Authority (FCA) will lift its ban on retail trading of cryptoasset-backed exchange-traded notes (crypto ETNs) from October 8, 2025, reflecting market maturation and improved investor understanding. While crypto derivatives remain prohibited for retail clients, the FCA requires crypto ETN providers to comply with financial promotion rules and the Consumer Duty, and warns that these products lack FSCS protection. FCA Executive Director David Geale highlighted stronger safeguards since the initial 2021 ban. WisdomTree’s Dovile Silenskyte views the move as groundwork for broader retail engagement. Concurrently, Coinbase launched its “Everything is fine” campaign criticizing the UK’s slow regulatory pace and outdated financial system. The FCA emphasized continued caution due to volatility and consumer protection concerns, marking a cautious integration of regulated crypto products into the retail market.
Bullish
The FCA’s decision to lift the retail ban on crypto ETNs is likely bullish for the UK crypto market. By allowing regulated trading of cETNs, the FCA is effectively opening a new on-ramp for retail investors, potentially driving increased demand for underlying crypto assets. The requirement for providers to adhere to strict financial promotion rules and the Consumer Duty ensures that this market expansion occurs with investor protections, reducing reputational risks. Historical precedent from the approval of U.S. spot Bitcoin ETFs shows that regulated products can attract significant inflows and improve price stability. In the short term, announcements of new cETN listings may spur trading volume and positive sentiment. Over the longer term, integrating regulated products could foster broader adoption and infrastructure development, supporting sustained growth. However, the ongoing ban on derivatives and FSCS exclusion maintains a cautious tone, which may moderate extreme volatility. Overall, the move signals a pragmatic shift toward regulation-led market maturation, underpinning a generally bullish outlook.