The UK just reversed its four-year ban on crypto exchange-traded notes, admitting the market has matured enough for retail investors to safely access these products. The Financial Conduct Authority announced Wednesday that UK residents can now buy crypto ETNs through FCA-approved exchanges.
Crypto ETNs are debt products that give investors exposure to cryptocurrencies without actually owning them. The underlying crypto gets held by regulated custodians while the notes trade like regular securities on exchanges.
David Geale from the FCA said the market has evolved significantly since 2021, when they initially banned these products, claiming they posed too much harm and had no legitimate investment purpose. That stance has completely flipped as the government gradually warmed up to crypto over recent years.
Starting October 8th, crypto ETNs can be held in registered pension schemes, and from April 2026, they’ll be allowed in Individual Savings Accounts, giving citizens tax-advantaged options for crypto exposure.
IG Group research predicts the UK crypto market could explode by 20% following this change. Their study found 30% of UK adults would consider investing in crypto through ETNs, attracted by the perceived safety and regulatory oversight. Current crypto ownership sits around 12-25%, depending on the study.
The FCA clarified that while lifting the ETN ban, they’re keeping restrictions on crypto derivatives for retail investors.
Conclusion
The UK lifted a four-year crypto ETN ban, citing market maturation, allowing retail access through FCA-approved exchanges, with analysts predicting 20% market growth from the policy change.
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