The UK's Financial Conduct Authority (FCA) has announced the removal of the ban on retail investor access to crypto exchange-traded notes (ETNs) starting October 8, 2025. This decision will open new investment opportunities in Bitcoin and Ethereum through recognized investment exchanges.
End of Crypto ETN Ban
Starting October 8, 2025, the FCA will allow retail investors in the UK to invest in ETNs tracking assets such as Bitcoin and Ethereum. This decision follows the lifting of restrictions imposed in 2021 due to market volatility issues. The FCA emphasizes compliance with UK Consumer Duty regulations.
Impact on Bitcoin and Ethereum Investments
Market analysts anticipate that this decision will lead to increased investments in Bitcoin and Ethereum ETNs. Opening the market to retail investors may enhance liquidity and interest in these assets. The FCA clarifies that these products do not fall under the Financial Services Compensation Scheme, impacting investor protections.
Germany and US ETN Experience
Germany and the US previously allowed retail ETN access, resulting in price and liquidity surges in the cryptocurrency market. In the US, the approval of a Bitcoin spot ETF saw a $15 billion capital influx within months. Experts predict that the opening of the market in the UK may similarly lead to increased inflows into Bitcoin and Ethereum.
The FCA's decision to remove the ban on retail investor access to crypto ETNs marks a significant change in the UK financial market, and it is expected to positively impact investments in cryptocurrencies in the future.
