Key Points:

• Starting October 8, 2025, U.K. retail investors will have the opportunity to acquire crypto exchange-traded notes (cETNs).
• These cETNs must be listed on exchanges approved by the FCA in the U.K. and they must comply with financial promotion and Consumer Duty regulations.
• Although retail access to these cETNs will be permitted, they will not be covered by the Financial Services Compensation Scheme.

Previously, the FCA prohibited retail access to crypto ETNs back in 2021 due to concerns over investor protection. As the market has matured and certain crypto investment products gained clearer understandings, the regulator has decided to lift restrictions, contingent upon the adherence to recognized rules and listings.

The FCA has emphasized that the cETNs must follow financial promotion rules to avoid any misleading advertising and must adhere to the Consumer Duty rules to prevent foreseeable harm. It’s important to note that these products will not have protection under the Financial Services Compensation Scheme.

This development follows the trend of retail investors internationally gaining access to a wide array of cryptocurrency exchange-traded funds (ETFs), which have seen significant total net assets accumulated.