UK FCA Allows Retail Investors to Purchase Crypto ETNs on Approved Exchanges
The United Kingdom's Financial Conduct Authority (FCA) will permit retail investors to purchase crypto Exchange-Traded Notes (ETNs) on approved exchanges, reversing a ban in place since 2021. This decision introduces several key points:
- Retail access to crypto ETNs offers a significant policy shift, previously limited to professional investors.
- ETNs backed by assets like Bitcoin #BTC and Ether #ETH have been available on the London Stock Exchange since May.
- Only certain FCA-approved UK exchanges can offer these products, with no compensation coverage from the Financial Services Compensation Scheme for investors.
- The FCA continues to prohibit crypto derivatives for retail customers, such as futures or options.
- Market stability and improved product clarity led to this regulatory change.
- The UK is developing broader regulations covering areas like stablecoins, exchanges, lending, and staking, expected by 2026.
In related developments, Standard Chartered has launched spot trading for Bitcoin and Ethereum for institutional clients, marking a notable entry into the crypto trading space for a global bank in the UK.