BREAKING: FCA Greenlights Crypto ETNs for Retail Investors – Your Move, Wall Street

The UK's Financial Conduct Authority just bulldozed the last barrier between Main Street and crypto.

Retail investors can now access exchange-traded notes (ETNs) tracking Bitcoin and Ethereum—no more watching from the sidelines while institutions play.

The regulator's 180-degree flip comes after years of 'consumer protection' theater—turns out even bureaucrats can't ignore a $2 trillion asset class forever.

City suits are already scrambling to repackage their crypto funds for the masses. Expect slick marketing, questionable fees, and at least one major scandal by Q1 2026.

One question remains: Will this finally force the SEC's hand stateside, or will Gary Gensler keep playing whack-a-mole with innovation?

Firms will soon be able to give retail consumers access to crypto exchange traded notes (cETNs), under changes announced by the FCA.

Crypto ETNs that retail consumers can access must be traded on an FCA-approved, UK-based investment exchange (a Recognised Investment Exchange or RIE). Financial promotion rules will apply so consumers get the right information and aren’t offered inappropriate incentives to invest.

David Geale, executive director of payments and digital finance at the FCA, said:

‘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.

This is the latest development as the FCA continues to establish a regulatory framework for crypto. We have outlined our crypto roadmap and recently published proposals on stablecoins as well as other aspects of the regime.

The FCA’s ban on retail access to cryptoasset derivatives will remain in place. The FCA will continue to monitor market developments and consider its approach to high-risk investments.

Source: FCA