UK Ends Four-Year Ban on Retail Crypto ETNs, Market Opens October 8

London, UK – The Financial Conduct Authority (FCA) has officially lifted its four-year ban on the sale of crypto exchange-traded notes (ETNs) to retail investors in the UK, with the change becoming effective on October 8, 2025. This significant regulatory shift has paved the way for several major asset management firms to introduce their crypto ETPs to individual investors. Hunter Horsley, CEO of Bitwise Asset Management, acknowledged the milestone, stating on social media, > "Crypto ETPs have finally arrived in the UK. Many platforms now provide access. Many more yet to. As ever, the work continues. An exciting milestone."

The FCA's decision reverses a prohibition first imposed in January 2021, which barred the sale, marketing, and distribution of crypto derivatives and ETNs to retail clients. The regulator cited the market's evolution and a more mature understanding of these products as key reasons for the change. This move aims to offer consumers greater choice while ensuring robust investor protections remain in place.

Following the regulatory update, prominent firms in the digital asset sector have swiftly made their products available. WisdomTree, 21Shares, Bitwise, and BlackRock are among the companies now offering Bitcoin and Ethereum ETPs to UK retail investors. These products, previously accessible only to institutional clients, can now be traded through UK-regulated investment platforms and brokerage accounts.

This development provides UK retail investors with a regulated and familiar pathway to gain exposure to leading cryptocurrencies. The ETPs are typically physically backed and non-leveraged, allowing investment without direct ownership of the underlying digital assets. The FCA has confirmed that its Consumer Duty will apply to firms offering these products, ensuring transparency and appropriate risk disclosures.

The lifting of the ban aligns the UK more closely with other global financial hubs, including the US, Canada, Hong Kong, and the European Union, which already permit similar investment vehicles. While the broader retail ban on crypto asset derivatives remains, the introduction of retail crypto ETPs marks a crucial step in the UK's strategy to position itself as a leading hub for digital assets, with further regulatory frameworks anticipated by 2026.