UK FCA to Lift Ban on Crypto ETNs by 2025

The FCA's decision signals a significant shift in the regulatory landscape, allowing retail access to crypto ETNs under strict guidelines. This change could boost market growth and attract institutional interest.

The UK's Financial Conduct Authority (FCA) has announced the lifting of its ban on crypto exchange-traded notes for retail investors, effective October 8, 2025. This move follows years of restriction and aims to support the growth and competitiveness of the UK crypto industry. David Geale, Executive Director at FCA, emphasized, "Since we restricted retail access to cETNs, the market has evolved, and products have become more mainstream and better understood. We’re providing consumers with more choice, while ensuring protections are in place." WisdomTree's Dovile Silenskyte noted the groundwork for broader engagement. Vaultz Capital has increased Bitcoin holdings in anticipation of these regulatory shifts.

Immediate effects may include increased retail participation in the crypto market. However, FCA remains firm on ensuring consumer protections remain robust. Institutional interest is expected to rise, potentially influencing market dynamics. The ban's revocation aligns UK policy closer to the US and EU, which have long allowed such products. While Bitcoin and Ethereum are likely central to this development, large-cap altcoins could also see increased attention. Similar regulatory changes in other markets have historically led to significant inflows and market strengthening. The FCA's actions could pave the way for further financial innovation and regulatory evolution in the crypto sphere, benefiting the broader investment ecosystem.