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

"Starting today, firms can offer retail investors exposure to bitcoin and other cryptoassets through ETNs traded on FCA-approved investment exchanges such as the London Stock Exchange or Cboe UK. The change came into effect today after months of consultation and signals a more open - though still cautious - regulatory stance toward crypto. "Since we restricted retail access to cETNs, the market has evolved, and products have become more mainstream and better understood," said David Geale, executive director of payments and digital finance at the FCA."

"Unlike exchange-traded funds (ETFs), ETNs are debt instruments that track the price of an asset rather than holding it directly. They allow investors to gain exposure to bitcoin through regulated markets without taking custody of the underlying crypto."

"According to new research from IG Group, the U.K. crypto market could grow by as much as 20% following the introduction of retail-accessible ETNs. IG's survey found that nearly a third of U.K. adults would consider investing in crypto via ETNs, with interest strongest among younger investors - about half of those aged 18 to 34. "Crypto ETNs represent a significant step forward for the U.K. market, opening access to millions of investors who have previously been cautious or excluded," said Michael Healy, IG's U.K. managing director. "The ability to hold crypto within familiar, tax-efficient vehicles like ISAs and pensions is a real milestone.""

FCA lifted a four-year ban on retail access to bitcoin and crypto exchange-traded notes (cETNs), enabling firms to offer exposure through ETNs traded on FCA-approved exchanges such as the London Stock Exchange and Cboe UK. The change follows months of consultation and signals a more open but cautious regulatory stance. ETNs act as debt instruments that track asset prices rather than holding underlying crypto, allowing exposure via regulated markets without custody. Market research suggests the U.K. crypto market could grow up to 20% as nearly a third of adults would consider ETNs, with strongest interest among 18–34-year-olds and potential ISA and pension use.

Read at Bitcoin Magazine