The UK’s Financial Conduct Authority (FCA) has officially ended its four-year ban on retail access to bitcoin and other digital asset exchange-traded notes (ETNs), a move expected to boost the domestic market by up to 20%.
FCA opens access to retail investors
For the first time, individuals—not just professional investors—can access bitcoin ETNs as long as they are traded on FCA-approved investment exchanges.
Mark Aruliah, Head of EMEA Policy at Elliptic, commented:
“Allowing retail investors to gain exposure through UK-recognised exchanges keeps this activity within the regulatory perimeter, rather than pushing consumers offshore to less regulated environments.”
However, crypto asset derivatives for retail investors remain banned, and ETNs have yet to be listed on the London Stock Exchange. The FCA maintains that firms offering these products must comply with the Consumer Duty but notes that ETNs will not be covered by the Financial Services Compensation Scheme.
Surge in interest and growth projections
IG Group’s recent research suggests the UK digital asset market could grow by 20% following the policy change, with 30% of UK adults considering ETN investment.
Michael Healy, UK Managing Director at IG, stated:
“Crypto ETNs represent a significant step forward for the UK market, opening access to millions of investors who have previously been cautious or excluded.”
Interest is particularly strong among younger investors, who value regulation and the potential to hold ETNs in ISAs and pensions.
Regulatory context and next steps
The FCA’s phased approach to bitcoin regulation includes ongoing consultations for comprehensive rules covering stablecoins, trading, and custody, with full rollout expected in 2026.
Industry leaders emphasize the need for a clear framework and urge the government to allow bitcoin ETFs, which remain banned for now.
Comparison to global markets
By lifting the retail ban, the UK aligns more closely with the U.S., Canada, and EU, aiming to become a global hub for digital assets.
The FCA’s decision follows the launch of the first UK-listed bitcoin ETNs for professional investors in May 2024, though volumes lag behind U.S. ETF counterparts.
For more on bitcoin ETF and ETN growth and related trends, see the US bitcoin ETF current and historical holdings and bitcoin price history chart.
