UK FCA Opens Retail Trading of Crypto ETNs from Oct 2025
From October 8, 2025, the UK Financial Conduct Authority (FCA) will permit retail investors to trade crypto exchange-traded notes (ETNs) on recognized investment exchanges. These debt securities track cryptocurrency performance net of fees and do not hold underlying assets directly. The policy reverses the 2021 ban on retail crypto ETNs and follows FCA’s earlier approval for professional investors and a June 2025 consultation. Approved crypto ETNs must meet strict authorization, transparency, and Consumer Duty requirements. They will be subject to financial promotion rules and clear disclosures but remain outside the Financial Services Compensation Scheme (FSCS). Meanwhile, the FCA keeps its ban on high-risk crypto derivatives like futures and options for retail clients. This move aligns the UK with markets in the US, Canada, Hong Kong, and the EU, balancing consumer protection with rising demand for regulated digital-asset products.
Bullish
Allowing retail trading of crypto ETNs signals growing regulatory acceptance and a new channel for retail exposure to cryptocurrencies. In the short term, anticipation around the October 2025 launch may boost demand for regulated crypto products and related market sentiment. Over the long term, expanded retail access through cleared, transparent ETNs could increase liquidity and adoption of digital assets, supporting broader market growth despite continued restrictions on high-risk derivatives.