UK Regulator Opens Crypto ETNs to Retail Investors Starting October 8

UK FCA will allow retail investors to buy crypto ETNs starting October 8, 2025.

Only cETNs listed on FCA-approved UK exchanges and following strict rules will be permitted.

Crypto ETNs will not be covered by the Financial Services Compensation Scheme.

Retail investors in the United Kingdom will gain access to crypto exchange-traded notes (cETNs) starting October 8, 2025. The Financial Conduct Authority (FCA) disclosed this move as part of a procedure shift allowing retail participation in a market once limited to professional investors.

The regulator had initially restricted retail access to these products in 2021 due to protection concerns. This new rule, however, introduces clear conditions to ensure adherence with existing financial promotion and consumer protection standards.

FCA Sets Conditions for Crypto ETN Listings

According to the FCA, only cETNs listed on recognized UK-based exchanges with FCA approval will be eligible for sale. These listings must comply with the agency’s financial promotion regulations, which are developed to contain deceitful claims and marketing. Providers must present accurate information and avoid aggressive or inappropriate promotional tactics aimed at inexperienced investors.

In addition, firms issuing these products are required to follow the FCA’s Consumer Duty regulations. These rules instruct financial service providers to take reasonable steps to foreseeable harm to customers. Issuers must ensure that retail investors receive fair value, clear communication, and adequate support throughout their interaction with the products.

Despite the regulatory access, the FCA confirmed that cETNs will not fall under the protection of the Financial Services Compensation Scheme (FSCS). This means retail investors will not be qualified for compensation if an ETN provider fails or the investment performs badly. The regulator stated this risk clearly in the announcement, emphasizing the importance of investor awareness regarding the nature of these products.

Policy Shift Follows Global Trends

The FCA’s decision to re-open the cETN market to retail investors comes amid growing activity in international crypto markets. In the United States, multiple crypto exchange-traded funds (ETFs) have launched, contributing to increased investor participation. Data from SoSoValue shows that these ETFs have reached $146.4 billion in total net assets.

Although the UK conclusion does not apply to crypto ETFs, it reflects a broader shift in how regulators approach digital asset investment vehicles. The FCA noted that while crypto markets remain volatile, certain products now offer more transparency and structure than in previous years.

The new access controls for cETNs will take effect starting October 8, 2025. Retail investors, platforms, and issuers must align their operations with FCA-approved exchanges and fully follow the updated regulatory needs. The FCA has instructed all stakeholders to prepare for the change within the given period.