Key Takeaways

Britain’s financial regulator has lifted its four-year ban on the sale of crypto-linked exchange-traded notes (ETNs) to retail investors.

The move marks a significant softening of the Financial Conduct Authority’s stance on crypto investment products and brings the U.K. closer in line with other European markets where such products have long been available.

FCA Lifts Ban On Crypto ETNs

On Wednesday, Oct. 8, the Financial Conduct Authority (FCA) once again allowed recognised investment exchanges to list crypto ETNs for all investors, overturning its 2021 decision that barred sales to retail customers on consumer protection grounds.

Crypto ETNs are debt securities that track the price of crypto such as Bitcoin or Ethereum, offering exposure without requiring investors to directly hold the tokens themselves.

FCA Executive Director of Payments and Digital Finance David Geale said:

“Since we restricted retail access to cETNs, the market has evolved, and products have become more mainstream and better understood.

Eager Young Investors

The FCA’s decision to lift its ban on crypto ETNs comes amid growing appetite for regulated crypto exposure among U.K. investors, particularly younger ones.

A survey shared with CCN by trading platform IG found that 30% of adults said they were open to investing in crypto ETNs, rising to 50% among 18- to 24-year-olds.

Those figures are far higher than current levels of crypto ownership.

A 2024 FCA survey found that only 12% of Britons currently hold crypto assets, with average holdings of around £1,842.

The IG report also noted that potential tax advantages linked to ETN investments may further boost demand now that the products are set to return to U.K. exchanges.

Crypto Industry Reacts

Nick Jones, Founder and CEO of  Zumo

“It’s of course an extremely welcome development for the industry, and a real sign the regulator recognises both growing investor appetite and the potential of the crypto sector to open up new opportunities.”