Catenaa, Monday, August 04, 2025-The UK Financial Conduct Authority will allow retail investors to access crypto exchange-traded notes, or cETNs, on approved UK exchanges starting October 8. The decision marks a major shift from the regulator’s 2021 ban, which had limited these products to professional investors.
The FCA said the market has matured, making cETNs more widely understood and suitable for broader access.
However, the products will not be protected by the Financial Services Compensation Scheme, and the ban on crypto derivatives for retail customers will remain. Firms offering cETNs must comply with strict consumer protection rules, including the Consumer Duty standard, to ensure clear and fair information.
Unlike U.S. spot crypto ETFs, cETNs are debt securities issued by financial institutions that track the price of crypto assets, minus fees, without necessarily holding the assets directly. The FCA stressed that retail buyers should fully understand the risks before investing, as the products remain high-risk instruments.
The move follows a consultation earlier this year and aligns the UK with other financial hubs, including the U.S., Canada, and the EU, in opening structured crypto products to individual investors.\
Initial UK-listed cETNs, introduced in 2024 by 21Shares, WisdomTree, and Invesco, saw low volumes due to the previous restrictions.
The regulator is continuing its phased approach to crypto regulation while consulting on broader rules for stablecoins, lending, custody, and trading platforms, with full implementation targeted for 2026.
