Financial Regulatory Body Expands Cryptocurrency Exchange-Traded Notes Availability to Retail Investors Starting in October
UK Retail Investors to Gain Access to Crypto Exchange-Traded Notes (cETNs) from October 2025
Starting October 8, 2025, UK retail investors will be able to invest in crypto exchange-traded notes (cETNs), following the Financial Conduct Authority's (FCA) decision to lift a four-year ban that was imposed in 2021.
The FCA's move aims to provide retail investors with more choice while ensuring protections are in place. Crypto ETNs are securities that track cryptoassets and can be traded on the London Stock Exchange during trading hours.
Protections and Conditions
The FCA has set out several protections and conditions for this access. Crypto ETNs must be listed only on FCA-approved UK-based regulated exchanges to ensure oversight and compliance. Strict financial promotion rules also apply, requiring accurate information and prohibiting misleading or exploitative marketing aimed at inexperienced investors.
Retail investors will not be protected by the Financial Services Compensation Scheme (FSCS) in case of provider failure or poor performance of cETNs, meaning no compensation safety net exists. The FCA continues to prohibit retail investors from trading crypto derivatives due to their complexity and volatility risks.
The FCA will monitor market developments and may adjust rules if new risks or conditions emerge, ensuring investor protection evolves with the market.
Regulatory Framework for Cryptoassets
This move is part of the FCA's effort to formalize its regulatory framework for cryptoassets. The FCA has recently set out a "crypto roadmap" and issued proposals relating to stablecoins and other key elements of the regime. Firms offering cETNs will be subject to financial promotion rules to ensure consumers receive clear and accurate information and are not exposed to "inappropriate incentives".
Dovile Silenskyte, director of digital assets research at WisdomTree, considers the FCA's move as a "pivotal moment" in the integration of digital assets into the broader financial system. She notes that the decision reflects a more mature and institutionalized crypto ecosystem, with growing regulatory clarity and the precedent set by the success of bitcoin ETPs in the US.
The FCA's ban on retail access to cryptoasset derivatives remains in place. The Consumer Duty will apply to firms distributing these products to retail investors, but cETNs will not be covered by the Financial Services Compensation Scheme.
By accessing crypto through ETPs, retail investors can engage with crypto in a safer, more transparent environment, reducing the risks of unregulated platforms, according to Silenskyte. She acknowledges that mass market restrictions still apply, but the move lays essential groundwork for broader retail engagement under a formal regulatory regime.
The FCA has stated that consumers should understand the risks before investing in crypto ETNs. The familiar ETP structure, as per Silenskyte, enables investors to better evaluate and manage digital assets within diversified portfolios, supporting more informed, long-term decision-making.
[1] FCA Press Release [2] FCA Policy Statement [3] FCA Policy Statement PS21/22 [4] FCA Policy Statement PS19/25 [5] FCA Policy Statement PS18-14
- As the Financial Conduct Authority (FCA) lifts its ban on crypto exchange-traded notes (cETNs) from October 2025, retail investors in the UK will have an opportunity to invest in these securities that track cryptoassets, marking a significant moment for technology-driven finance and investing.
- While retail investors will not be protected by the Financial Services Compensation Scheme (FSCS) when investing in cETNs, the FCA has set protections and conditions to ensure compliance, such as listing cETNs only on FCA-approved UK-based regulated exchanges and adhering to strict financial promotion rules.
