UK Opens Crypto ETNs To Retail Investors
Here’s What You Need to Know
After years of being locked out, UK retail investors are finally getting regulated access to crypto exchange-traded notes (cETNs). Starting October 8, 2025, you’ll be able to buy these products through recognized UK exchanges, but there are some important caveats to understand.
Defining Crypto ETN
A crypto ETN (cETN) is an investment that tracks a cryptocurrency’s value. You do not own the coins, but the issuer promises to pay based on its performance, with risks from price changes and the issuer’s ability to pay.
What Actually Changed?
The Financial Conduct Authority (FCA) (see Handbook Notice 132) has lifted its blanket ban on retail access to crypto ETNs, but this isn’t a free-for-all. You can only buy cETNs that are listed on UK-recognized exchanges like the London Stock Exchange or Cboe UK. Think of it as the FCA saying “okay, but only the properly regulated stuff.”
Defining Cboe
Cboe Global Markets is a worldwide operator of stock, options, futures, and foreign exchange markets. It provides trading, clearing, and market data services to investors and institutions around the globe.
Why the Change of Heart?
The regulator’s reasoning is straightforward: the market has matured, people understand these products better, and institutional investors have already had access since March 2024 without major issues. The FCA wants to give consumers more choice while keeping the guardrails in place.
It’s worth noting this follows a logical progression—first professional investors got access, then came a consultation period, and now retail investors are getting their turn.
Timeline: How We Got Here
- January 2021: FCA bans retail access to crypto derivatives and ETNs
- March 2024: Professional investors get access to cETNs
- June 2025: FCA consults on retail access
- August 1, 2025: FCA confirms the change
- October 8, 2025: Retail access goes live
What This Means for Different Players
- If you’re a retail investor: You’ve got a new way to get crypto exposure through regulated exchanges. But remember, these are still high-risk investments with no Financial Services Compensation Scheme protection. The crypto derivatives ban remains, so you’re still locked out of things like crypto futures and options.
- If you’re a platform or broker: Time to dust off those compliance manuals. You’ll need to update your appropriateness tests, risk warnings, and client communications before October 8. The FCA isn’t relaxing marketing rules—if anything, they’re being extra strict about how these products are promoted.
- If you’re an issuer or exchange: You’ll need to ensure your listings meet all the FCA’s expectations and that your marketing complies with financial promotions rules.
The Reality Check
Industry coverage is calling this a “pivotal moment”, with some are even comparing it to the 1986 “Big Bang” that transformed London’s financial markets. That might be a bit dramatic, but it’s certainly significant for UK crypto markets.
Expect the first wave of listings to focus on Bitcoin and Ethereum ETNs, with platforms
scrambling to get their compliance systems ready for the October launch.
The Compliance Challenge
Here’s where things get tricky. The FCA isn’t just opening the floodgates, they’re maintaining strict marketing restrictions, requiring appropriateness checks, and demanding clear risk warnings. For firms, this means updating systems, training staff, and ensuring every client interaction meets the new standards.
This is particularly challenging because these products carry significant risks, operate in 24/7 markets, and require sophisticated monitoring to detect potential market abuse or conflicts of interest.
How StarCompliance Can Help You Navigate This
At StarCompliance (Star), we’ve been helping firms manage high-risk investment compliance for over 25 years. As crypto ETNs enter the retail space, we can help you launch confidently and compliantly.
- Real-time surveillance that monitors trading activity across traditional exchanges and blockchain networks through our Crypto Dealing Compliance Software
- Automated compliance workflows for marketing approvals and risk disclosures
- Comprehensive reporting that satisfies regulators and protects your business
The Bottom Line?
October 8 is coming fast. Firms that get their compliance right from day one will have a significant advantage in this new market while protecting what matters most – their license, reputation, and clients.
The opportunity is real, but so are the risks and compliance challenges. The firms that succeed will be those that balance innovation with rock-solid regulatory compliance from day one.
Ready to explore how Star can help you seize this opportunity while staying fully compliant? Get in touch – we’d love to chat about your specific needs.
Crypto Regulations Decoded
