The UK Financial Conduct Authority (FCA) has announced that retail investors will soon be able to access crypto exchange-traded notes (cETNs), under changes announced by the agency.
ETNs, which are similar to ETFs, are debt instruments for investors to gain exposure to an underlying asset. Traditional ETNs may track a security, or an index. The ban on retail access to crypto ETNs will go into effect from October 8, 2025.
In a public statement, the regulator said that these products must be traded on an FCA-approved UK exchange. As well, existing financial promotion rules will apply.
David Geale, Executive Director of payments and digital finance at the FCA, commented on the change:
“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.The Consumer Duty will apply to firms offering these products to retail investors. However, there won’t be coverage from the Financial Services Compensation Scheme (FSCS). Consumers should ensure they understand the risks before deciding to invest.”
The FCA noted that a retail ban on crypto derivatives remains in place.
The update on ETNs is described as part of the ongoing initiative to establish a framework for digital assets in the UK.
