UK crypto ownership falls to 8% in 2025 as larger holdings rise, FCA launches market rules consultation
A YouGov survey commissioned by the UK Financial Conduct Authority (FCA) found crypto ownership among UK adults fell to about 8% in 2025 from 12% in 2024, based on 2,353 interviews conducted Aug. 5–Sept. 2. Awareness of crypto remains high at about 91%, but ownership has pulled back after a year of large price swings, liquidations and losses. The composition of holders shifted toward larger balances: the share with very small holdings (under £100) declined, while those holding £1,001–£5,000 rose to roughly 21% and 11% held £5,001–£10,000. Among holders, 57% reported owning Bitcoin and 43% owned Ether; Solana ownership was around 21%. Risk tolerance remains higher among holders (63% willing to accept high risk for higher returns), but use of credit to buy crypto fell to 9% and staking participation dropped to 22%. The FCA noted participants in lending/borrowing tend to be more knowledgeable and risk-tolerant. The FCA also launched three consultations on crypto market rules covering exchanges, staking, lending and DeFi, with responses requested by Feb. 12, 2026 and aims to finalise regulation by end-2026. Key implications for traders: capital concentration in larger holdings may amplify volatility on big moves; reduced use of leverage/credit lowers immediate liquidation tail risk; and ongoing regulatory work could change product availability, custody and counterparty risk — all factors that may affect liquidity and execution for traders.
Neutral
The news is broadly neutral for crypto prices. Downward change in retail ownership (8% from 12%) signals reduced small-holder participation, which can lower retail-driven momentum and reduce near-term speculative buying pressure (bearish). However, the shift toward larger balances and higher concentration among remaining holders can increase volatility on large trades — a mixed effect that can produce sharp moves but not a clear directional bias. Reduced use of credit and lower staking participation suggest weaker systemic leverage and fewer forced liquidations, which lowers downside tail risk. The regulatory consultations create uncertainty that could temporarily constrain product availability or exchanges (potentially bearish) but also aim to improve market structure and confidence if final rules are clear (potentially bullish long term). Taken together, these factors balance out: less retail froth and lower leverage limit immediate upside and downside extremes, while concentration and regulatory change increase event risk. Thus the net expected price impact is neutral.