UK Lifts Retail Ban on Crypto ETNs for Regulated Market Investments
The U.K. has lifted its multi-year ban on crypto exchange-traded notes (ETNs) for retail investors, allowing them to invest through regulated products.
The Financial Conduct Authority (FCA) confirms that retail investors can purchase crypto ETNs listed on FCA-recognized exchanges like the London Stock Exchange (LSE).
Crypto ETNs track prices of assets like Bitcoin or Ethereum without granting direct ownership, and in the U.K., they must be fully physically backed by underlying assets.
There is a delay before these products will be available due to the FCA only starting to accept prospectuses for new products on September 25.
HM Revenue & Customs allows crypto ETNs in Individual Savings Accounts (ISAs) and registered pension schemes, enabling tax-free earnings.
From April 6, 2026, cETNs will be reclassified as Innovative Finance ISA (IFISA) investments, retaining their tax benefits.
The London Stock Exchange already lists several crypto ETNs, previously accessible only to professional investors, now open to retail investors.
U.S.-listed spot crypto ETFs are still ineligible under FCA rules due to trading in dollars on non-U.K. exchanges.
Major ISA providers are reviewing policies to enable cETNs on their platforms, with a gradual rollout anticipated as compliance systems adapt.
