UK Lifts Ban On Bitcoin ETNs, Crypto Retail Could Jump 20%

The British Monetary Conduct Authority (FCA) has formally lifted the four-year time period prohibit on retail entry to bitcoin and crypto exchange-traded notes (cETNs).

Beginning at this time, firms can provide retail buyers publicity to bitcoin and different crypto belongings by way of ETNs traded on FCA-approved funding exchanges such because the London Inventory Change or Cboe UK.

The change got here into impact at this time after months of session and indicators a extra open – however nonetheless cautious – regulatory stance in the direction of crypto.

“Since we restricted retail entry to cETNs, the market has advanced and merchandise have change into extra mainstream and higher understood,” mentioned David Geale, govt director of funds and digital finance on the FCA. “In gentle of this, we’re providing customers extra selection, whereas guaranteeing protections are in place.”

In contrast to exchange-traded funds (ETFs), ETNs are debt devices that monitor the value of an asset slightly than instantly holding it. They provide buyers the chance to achieve publicity to bitcoin by way of regulated markets with out taking custody of the underlying crypto.

Influence on the UK market and investor curiosity

In response to new research from IG Group, the UK crypto market might develop by as a lot as 20% following the introduction of retail-accessible ETNs. IG’s analysis discovered that just about a 3rd of UK adults would think about investing in crypto by way of ETNs, with curiosity best amongst youthful buyers – round half of these aged 18 to 34.

“Crypto ETNs symbolize a major step ahead for the UK market, opening entry to thousands and thousands of buyers who have been beforehand cautious or excluded,” mentioned Michael Healy, IG’s UK managing director. “The power to carry cryptocurrencies inside well-known, tax-efficient autos similar to ISAs and pensions is an actual milestone.”

Analysts say the transfer brings the UK nearer to friends just like the US, Canada and the EU, the place regulated crypto funding merchandise are already out there. Nonetheless, consultants warn that progress should proceed if the nation needs to place itself as a real hub for digital belongings.

From ban to breakthrough

The FCA first banned the sale and advertising and marketing of crypto derivatives and ETNs to retail buyers in January 2021, citing volatility, valuation points and investor safety dangers. The restriction was partially relaxed in 2024, when skilled buyers gained entry to ETNs backed by bitcoin and ether.

That entry expanded additional in June 2025, when the FCA started consultations on lifting the retail ban – a course of that culminated in at this time’s formal approval.

For now, the reintroduction of retail crypto ETNs marks a milestone for Britain – a second that would reignite its ambitions to change into a number one international heart for digital finance.

“ETNs are only one piece of the puzzle,” says IG’s Healy. “To totally unlock the potential of cryptocurrencies, Britain wants regulatory framework – and quick, or we danger falling far behind our international friends.”