- FCA reverses 2021 ban on retail access to crypto ETNs.
- New policy enables expanded consumer choice.
- BTC and ETH likely to see increased retail activity.
The Financial Conduct Authority (FCA) will allow UK retail investors to access crypto exchange-traded notes (cETNs) starting October 8, 2025, marking a shift from the 2021 retail ban.
This policy shift could increase mainstream crypto market participation, notably affecting Bitcoin and Ethereum, although consumer-risk messaging remains a primary focus of the FCA.
The Financial Conduct Authority (FCA) is set to allow UK retail investors access to crypto exchange-traded notes (cETNs) starting in October 2025. This marks a reversal of the previous ban implemented in 2021 due to market volatility. The move signifies a significant shift in regulatory approach, which aims to provide consumers with more choices while ensuring there are protections in place.
Sections
The FCA will soon permit FCA-authorized firms to offer cETNs to retail clients on Recognized Investment Exchanges. David Geale, Executive Director, emphasized that “since we restricted retail access to cETNs, the market has evolved, and products have become more mainstream and better understood. In light of this, we’re providing consumers with more choice, while ensuring there are protections in place. This should mean people get the information they need to assess whether the level of risk is right for them.” Source
The immediate market response might involve increased interest in mainstream cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), which are key components of cETNs. These changes are expected to influence trading volumes and investor demographics as consumer protection measures continue to evolve. The FCA’s prioritization of compliance with advertising standards aligns with the Consumer Duty regime, opening opportunities for UK-based exchanges approved under Recognized Investment Exchanges (RIEs).
Long-term trends suggest that allowing retail involvement in crypto ETNs can lead to broader crypto adoption. These regulatory changes emphasize the FCA’s commitment to consumer choice with appropriate safeguards. The potential financial impacts, such as a rise in crypto ETN trading volumes, reflect prior patterns observed in other regions, like the US. To read more on this regulatory shift, visit this page.
