UK FCA Lifts Ban on Crypto Exchange-Traded Notes

TLDR

• FCA’s ban on crypto ETNs was imposed in January 2021.
• The policy shift aims to attract retail and institutional capital.
• Bitcoin and Ethereum are expected to see increased investment.

On June 6, 2025, the UK Financial Conduct Authority (FCA) announced it will lift its national ban on retail access to crypto Exchange-Traded Notes (ETNs). This decision represents a significant policy shift, aligning the UK more closely with the regulatory frameworks of the U.S. and EU.

The FCA, the UK’s principal financial regulator, is responsible for this change. This move positions the UK as a competitive player in the global crypto market, offering more access to digital assets.

Background on the FCA’s Previous Ban

The FCA had previously imposed a ban on crypto ETNs and derivatives for retail investors in January 2021. This decision was made to mitigate high risks and address concerns about consumer vulnerability. Prior to the 2021 ban, a similar restriction was placed in 2019.

Significant figures in the crypto space, such as Laurent Kssis of CEC Capital, a consultancy for crypto ETPs, and Duncan Moir, president at 21Shares, have supported this policy shift. Both have historically advocated for regulated retail access to cryptos.

Expert Commentary and Reactions

“We want to rebalance our approach to risk and lifting the ban would allow people to make the choice on whether such a high-risk investment is right for them given they could lose all their money.”

Richard Geale, FCA Director of Strategy and Competition

“The change in stance was about time.” He noted the FCA has been under “tremendous pressure” to lift the ban as retail investors can access these products in other jurisdictions.

Laurent Kssis, Founder, CEC Capital

“If the ban is removed, UK retail investors will finally get access to regulated products on regulated exchanges. That is important because to-date they’ve been forced to buy cryptoassets directly.”

Duncan Moir, President at 21Shares

Anticipated Impact on the Crypto Market

The FCA’s decision is expected to draw considerable retail and institutional capital into regulated ETN products. A similar effect was observed following the U.S. SEC’s approval of spot Bitcoin ETFs, which attracted billions in capital.

Institutional providers like 21Shares and market infrastructure providers, such as the London Stock Exchange, are likely to benefit from new product listings and retail inflows.

Impacted Cryptocurrencies and Products

The ETNs reintegrated into the market will focus mainly on core assets, specifically Bitcoin (BTC) and Ethereum (ETH). These assets are expected to experience increased retail investment through regulated exchanges.

Other beneficiaries could include governance tokens of DeFi protocols integrating with ETNs, and trading venues listing these products. These aspects might lead to increased engagement with related infrastructure providers.