UK Lifts Crypto ETN Ban, Opening Retail Access and Boosting London’s Crypto Hub Ambitions

The UK’s Financial Conduct Authority (FCA) has lifted its ban on retail investment in cryptocurrency exchange-traded notes (ETNs) and ETFs, a restriction in place since 2019. Effective from June 6, 2025, UK retail investors can now access these regulated crypto investment products, including those tracking Bitcoin, Ethereum, and other leading tokens, via the London Stock Exchange and other approved venues. The policy change forms part of the UK’s post-Brexit drive to enhance fintech competitiveness, attract digital asset innovation, and position London as a premier European crypto hub. The FCA will enforce strict risk disclosure and marketing rules to protect retail investors, while the ban on crypto derivatives for retail remains due to ongoing concerns about volatility and consumer protection. This regulatory easing is expected to significantly increase institutional and retail inflows into UK-listed crypto funds, mirroring positive trends observed in the US, EU, and Hong Kong after similar moves. Crypto ownership in the UK has risen sharply, doubling to 12% in 2024, reflecting growing domestic market demand. Industry leaders view this development as a decisive step toward mainstream crypto adoption in the UK. Further, regulatory reforms for crypto exchanges and custodians are planned for 2026 to further integrate crypto oversight with traditional financial markets. Analysts predict this move will boost liquidity, foster innovation in areas such as stablecoins and DeFi, and strengthen London’s status as a global crypto financial center. Overall, the policy shift is considered bullish for Bitcoin and the broader digital asset market.