The UK’s financial regulator is opening the door for wider retail access to crypto-linked investment products.
On June 6, the Financial Conduct Authority (FCA) proposed lifting its ban on cryptocurrency Exchange-Traded Notes (ETNs), allowing UK retail investors to buy these products on recognized investment exchanges for the first time.
The move marks a major step toward regulated crypto exposure for the public. While UK investors still won’t get access to spot Bitcoin ETFs like in the US, ETNs provide a way to trade debt instruments that track digital asset prices, without holding the underlying crypto.
Safeguards will still apply. Products must meet the UK’s financial promotion rules, be listed on regulated exchanges, and include clear risk disclosures. Incentives and aggressive promotions will remain restricted.
ETNs: What investors need to know
ETNs are unsecured debt notes that mirror the price of assets like Bitcoin, but carry issuer risk and don’t grant ownership of the actual crypto. In practice, the experience will feel like trading an ETF, complete with a ticker and intraday liquidity, but without direct title to coins.
Retail investors will now be able to buy the same sterling-denominated ETNs that professional investors already trade on the London Stock Exchange, including products from 21Shares, WisdomTree, Invesco, and ByteTree (such as the bitcoin-and-gold BOLD ETN).
ByteTree founder Charlie Morris welcomed the move: “
“I am thrilled by the recent announcement that the FCA has lifted the ban on UK retail investors trading in crypto ETFs.”
Still no spot Bitcoin ETF
The FCA’s proposal does not cover spot crypto ETFs, which remain a key differentiator for the US market following BlackRock’s IBIT and similar launches.
But for UK investors, today’s move signals progress, and the clearest path yet to bringing mainstream crypto access inside the regulatory perimeter.
Featured image via Shutterstock
