Britain Reopens Door to Crypto Exchange-Traded Notes After Market Evolution
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On October 8, the UK’s Financial Conduct Authority (FCA) reversed its four-year prohibition on crypto exchange-traded notes (ETNs) for retail investors.
The regulatory body justified this decision by pointing to significant evolution within the digital asset sector, including a more robust market structure, enhanced investor understanding, and a clearer regulatory framework.
Retail Investors Can Access ETNs Through Licensed Exchanges
Under the new guidelines, retail investors in the UK can now purchase crypto ETNs exclusively through FCA-regulated exchanges.
This controlled access point contrasts with the environment in 2021, when the FCA initially banned these products for retail consumers, deeming them “ill-suited” due to pervasive market risks and a lack of transparent regulation.
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David Geale, the FCA’s executive director of payments and digital finance, explained that the current state of the market reflects clarity. He noted that products are now more transparent, better understood, and safely managed under clearer regulations.
ETNs are debt instruments that track the performance of an underlying asset, such as Bitcoin or Ethereum, without requiring the investor to hold the asset directly.
They are issued by banks and traded on exchanges. This allows exposure to digital assets through traditional financial systems.
In simple terms, they give investors a regulated route into crypto markets while keeping risk under control.
This regulatory change is projected to impact the UK’s crypto landscape.
A report by IG Group forecasts a potential 20% market growth following the ETN relaunch, a projection supported by its research indicating that 30% of UK adults are open to investing in crypto through these regulated vehicles.
The primary drivers for this interest are the perceived safety and regulatory oversight that ETNs provide.
The UK’s policy shift aligns with a broader trend of global adoption and regulatory acceptance. For instance, in the U.S., regulators have already approved spot crypto trading through SEC and CFTC-approved exchanges.
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In Europe, Belarus has instructed national banks to expand their use of crypto.
In Latin America, Bolivia’s central bank signed a cooperation deal with El Salvador’s digital assets commission, recognizing crypto as an alternative to fiat.
Pension Inclusion Signals Long-Term Legitimacy
The UK government also released a new policy statement, which detailed that crypto ETNs can be held in registered pension schemes, starting from October 8, 2025.
By April 2026, they’ll also be available in Stocks & Shares Individual Savings Accounts (ISAs).
This policy opens a path for everyday savers to include digital assets in their long-term, tax-advantaged retirement portfolios.
The decision follows an Aviva Censuswide poll of 2,000 UK adults conducted in June. The survey result showed that one in four respondents considered adding crypto to their retirement portfolios.
Among younger adults aged 25 to 34, interest remains strong. One in five said they had already withdrawn funds from their pension to purchase crypto. Across all age groups, 21% of adults have invested in crypto at some point, and 14% continue to hold it.
The stakes are enormous. Over four in five UK adults currently have a workplace or private pension, with the national pension market worth roughly £3.8 trillion as of 2024.
Even a small shift toward crypto ETNs could move billions in capital and reshape how pension funds are structured.
