UK FCA to Permit Retail Access to Crypto ETNs Starting October 8

Retail investors in the U.K. will gain access to crypto exchange-traded notes (cETNs) starting October 8, following a new rule from the Financial Conduct Authority (FCA). Key points include:

The FCA previously restricted retail access to crypto ETNs in 2021 due to investor protection concerns.
Access is now permitted for ETNs listed on FCA-approved U.K. exchanges.
Products must comply with financial promotion rules to avoid misleading advertising.
Firms must adhere to the FCA’s Consumer Duty rules to prevent foreseeable harm.
No coverage under the Financial Services Compensation Scheme for these products.
This change follows increased access to cryptocurrency ETFs in the U.S., which have reached $146.4 billion in total net assets.