FCA Ends 4-Year Ban — UK Crypto ETNs See 20% Growth Potential

- The UK's Financial Conduct Authority lifts its ban on crypto ETNs for retail investors. - The decision is poised to drive market growth and align the UK with global financial hubs. On October 8, 2025, The Block reported that the UK’s Financial Conduct Authority (FCA) officially lifted its four-year ban on selling crypto exchange-traded notes (ETNs) to retail investors. This landmark decision allows retail investors to access ETNs through FCA-approved exchanges, signaling a major shift in the UK’s approach to regulated crypto products and paving the way for broader market participation. Analysts project the FCA’s move will inject significant momentum into the UK’s digital asset market. Research from IG Group forecasts potential market growth of up to 20%, driven by heightened interest in regulated crypto investments. An IG survey found that 30% of UK adults are willing to invest in crypto via ETNs, a notable leap from the 12% crypto ownership the FCA currently estimates. By aligning its policies with financial powerhouses like the United States, Canada, and Hong Kong, Britain strengthens its position in the competitive global crypto ecosystem. Market analysts suggest that offering regulated access to crypto ETNs could accelerate mainstream adoption and attract institutional and individual investment to the UK’s robust regulatory framework. Young investors, particularly those aged 18 to 34, show the greatest enthusiasm for these products. Data from IG Group reveals that nearly 50% of this demographic intend to invest. ETNs appeal to retail participants seeking diversified portfolios due to their perceived safety and regulatory oversight, while tax-efficient advantages, such as inclusion in ISAs and pension schemes, also add to their attractiveness. Despite allowing ETNs, the FCA maintains its ban on selling crypto derivatives to retail investors. This decision reinforces a phased strategy toward comprehensive crypto regulation and anticipates a wider regulatory framework covering stablecoins and broader digital asset services, which the FCA plans to implement in 2026. The FCA has clarified, however, that the Financial Services Compensation Scheme, which protects consumers if a company becomes insolvent, will not cover crypto ETNs. Firms selling ETNs must still adhere to the FCA’s Consumer Duty regulations to ensure favorable outcomes for investors. As of 15:14 UTC on October 8, market data was as follows: - Bitcoin (BTC) traded at $122,497.66, a 0.36% change over 24 hours. - Ethereum (ETH) stood at $4,459.54, a 2.07% decline in the same period. - Bitcoin held a dominant 58.39% of the crypto market share, while Ethereum held 12.87%.