UK Retail Investors May Soon Get Bite of Crypto ETNs as FCA Mulls Rule Shift
London’s financial watchdog—the FCA—is flirting with the idea of letting everyday Brits trade crypto exchange-traded notes (ETNs). A move that’d toss retail investors into the deep end of digital asset speculation.
Regulators have kept crypto ETNs locked behind a ‘professional investors only’ sign since 2021. Now they’re testing the waters—just as institutional money starts flowing back into crypto. How convenient.
If approved, the change would let UK retail traders access regulated crypto derivatives without the hassle of direct custody. Because who actually wants to secure their own private keys?
The FCA’s still warning investors to ‘be prepared to lose all their money.’ But hey—at least they’ll lose it through proper channels this time.
Corporate Interest in XRP Surges as Firms Eye It for Treasury Reserves
Kraken UK’s General Manager, Bivu Das, called the proposal a turning point, arguing that the market has matured beyond the need for blanket restrictions. Kraken, one of the largest FCA-registered platforms, believes broader access must come with robust investor education and clear disclosures.
Although crypto ETNs were allowed for institutional trading in the UK earlier this year, they saw limited adoption. Broader availability could change that. However, the FCA emphasized that its retail derivatives ban will remain, and any new rules will come with strict financial promotion standards to ensure consumer protection.
Comprehensive legislation covering stablecoins, staking, and custody remains under development, with full rollout expected by 2026. While no date has been given for a final decision, the FCA’s latest MOVE signals growing openness to integrating crypto into the mainstream investment landscape.
