The UK’s Financial Conduct Authority (FCA) announced today that retail investors will be able to buy crypto-backed Exchange Traded Notes (cETNs) on FCA-approved exchanges. This change represents a significant update in the the country’s crypto rules and aims to expand investment options.
Retail Investors Gain Crypto Access
Starting October 8, retail investors can buy cETNs on UK exchanges like the London Stock Exchange, allowing them to participate in the crypto market without directly owning volatile assets. In 2024, the FCA permitted professional investors to buy cETNs, and new US regulations allowed Bitcoin ETFs, boosting crypto investment.
The UK’s clear rules, including discussions about stablecoins, are attracting institutional investors. This decision gives retail investors a chance for higher returns, putting the UK on par with markets like Germany and Switzerland.
While cETNs represent new investment opportunities, they also involve significant risks. Notably, these instruments lack Financial Services Compensation Scheme (FSCS) protection, meaning no compensation will be available in the event of substantial losses due to market volatility.
Unlike traditional investments, cETNs do not represent ownership of real assets and rely on the issuer’s ability to track crypto performance. Although regulations will soon require clearer risk warnings, the ban on crypto derivatives limits retail investors’ access to even riskier products.
Regulatory Tolerance in the UK
Between 2024 and today, the UK has improved its rules for crypto to attract big investors while keeping protections for consumers. In September 2024, the Property (Digital Assets) Bill was introduced to recognize cryptocurrencies as personal property, which protects investors from fraud.
By January 2025, the rules for staking were relaxed, meaning collective investment scheme rules would no longer cover it. This change encourages institutional investors to participate more in the market. In June 2025, the FCA proposed lifting its ban on crypto exchange-traded notes (cETNs) for retail investors. The decision was aimed at encouraging growth and competitiveness in the UK’s digital asset sector.
