FCA clears path for UK retail crypto ETF trading—kind of
The post FCA clears path for UK retail crypto ETF trading—kind of appeared on BitcoinEthereumNews.com.
The UK’s Financial Conduct Authority has proposed lifting its longstanding ban on crypto exchange-traded notes for retail investors, opening the door for broader access to regulated crypto exposure through public investment exchanges. The move, announced June 6, forms part of a broader regulatory push to bolster market competitiveness and reduce barriers for financial firms. Retail investors would be allowed to purchase crypto ETNs, debt instruments tied to digital asset prices, if these are listed on a recognized investment exchange and meet the UK’s financial promotion rules. The FCA emphasized that safeguards would still apply, including requirements for risk disclosures and restrictions on promotional incentives, similar to the rules for direct digital asset sales. Does the new FCA proposal allow spot Bitcoin ETFs? The FCA’s proposal does not extend to spot crypto ETFs like in the US through BlackRock and the Newborn Nine. ETNs (Exchange-Traded Notes) are unsecured debt securities that track the price of a digital asset but do not hold the underlying asset. The FCA proposes allowing retail access to these as long as they’re listed on recognized investment exchanges and meet financial promotion rules. Spot ETFs (Exchange-Traded Funds), which directly hold crypto (e.g., Bitcoin) as the underlying asset, are not currently permitted in the UK and remain subject to broader regulatory and legislative constraints. The FCA has not proposed changes here. So, this consultation does not pave the way for spot ETFs in the UK. Any move in that direction would likely require new rules around custody, fund structures, and potentially legislative change. For now, ETNs are the FCA’s chosen compromise vehicle for retail exposure under tight oversight. Charlie Morris from crypto ETF issuer ByteTree celebrated the news, stating, “I am thrilled by the recent announcement that the FCA has lifted the ban on UK retail investors trading in crypto ETFs.”…
Filed under: News - @ June 6, 2025 12:23 pm