The UK’s Financial Conduct Authority (FCA) has announced plans to allow retail investors access to cryptocurrency-based exchange-traded notes (ETNs) starting October 8, 2025. The ban on crypto derivatives will remain in place.
Permission to Trade Crypto ETNs
The FCA will begin allowing retail investors to trade crypto ETNs, emphasizing Bitcoin and Ethereum as key underlying assets. This regulatory change enables legal participation in the crypto market, but restrictions on crypto derivatives will be maintained to protect consumers from high risks.
Market Impacts and Reactions
The crypto community reacted mixedly to the news of the allowance, highlighting the need for greater regulatory clarity. Many influencers noted that this decision could expand access to markets without bias from financial institutions.
Market Analysis and Forecasts
Analysts believe that allowing ETN trading could enhance market liquidity and attract broader investor participation. According to CoinMarketCap, Bitcoin’s current price is $113,702.21 with a market cap of $2.26 trillion. Experts predict that this change may enforce stricter protective measures among issuers and reduce risk perceptions among investors.
In conclusion, the allowance for trading crypto ETNs represents a significant step for retail investors in the UK. This change could influence market dynamics and attract new participants while maintaining protective measures for consumers.
