UK to allow Bitcoin ETFs for retail investors

Published: Friday, June 6, 2025 at 12:10 pm

UK to Open Doors for Retail Crypto Investment

London, UK – The UK's financial regulator, the Financial Conduct Authority (FCA), is poised to significantly expand retail investor access to cryptocurrency-linked investment products. On June 6th, the FCA announced a proposal to lift its ban on cryptocurrency Exchange-Traded Notes (ETNs), allowing UK retail investors to purchase these products on recognized investment exchanges. This decision represents a notable shift towards regulated crypto exposure for the general public.

ETNs are debt instruments designed to track the price of digital assets like Bitcoin. They offer a way to gain exposure to crypto price movements without directly owning the underlying cryptocurrency. Investors will be able to trade these ETNs, which will have a ticker and offer intraday liquidity, similar to traditional ETFs. However, it's crucial to understand that ETNs carry issuer risk and do not provide ownership of the actual crypto assets.

The FCA's proposal mandates that these products adhere to UK financial promotion rules, be listed on regulated exchanges, and include clear risk disclosures. Aggressive promotions and incentives will remain restricted. Retail investors will now have access to the same sterling-denominated ETNs that professional investors already trade.

While the FCA's proposal does not extend to spot Bitcoin ETFs, which allow direct investment in Bitcoin, this move is seen as a positive step. It provides a regulated pathway for mainstream crypto access within the UK's regulatory framework.

BNN's Perspective:

This is a measured approach by the FCA. While the absence of spot Bitcoin ETFs may disappoint some, the introduction of regulated ETNs offers a safer, more controlled entry point for retail investors into the crypto market. The emphasis on risk disclosures and regulatory compliance is a responsible move that balances investor protection with the potential benefits of crypto exposure. This cautious approach is likely to be welcomed by both investors and regulators.

Keywords: UK, Bitcoin, ETFs, ETNs, FCA, Cryptocurrency, Retail Investors, Investment, Regulation, Finance, Crypto, Digital Assets, Trading, London Stock Exchange

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