With the reopening of retail access to crypto exchange-traded notes (ETNs) in the UK, competing issuers have sharply lowered fees, intensifying the race for market shares. According to a report from the Financial Times, some Bitcoin ETN issuers have reduced their fees to a historic low of just 0.05%, which has been described as a “cut-throat battle” among providers. In contrast, other crypto-linked ETNs maintain fees as high as 2.5%.

This fee reduction follows the Financial Conduct Authority’s decision to allow retail investors access to crypto-linked funds, recovering from a ban instituted in 2021, effective as of October 8.

At the time, Ian Taylor, board adviser for CryptoUK, commented, “We are delighted to see this reversal,” highlighting the positive steps towards a more balanced consumer risk approach.

Digital Asset Regulations The Financial Conduct Authority’s roadmap for digital asset regulations. Source: FCA

Newly accessible ETNs include 21Shares’ Core Bitcoin ETP and Ethereum Core Staking ETPs, which decreased their fees to 0.1%, Fidelity’s Physical Bitcoin ETP, now at 0.25%, and CoinShares’ Physical Staked Ethereum ETP, which currently has no management fees.

UK Struggles with Crypto Integration

The FCA’s rule changes are also part of a larger mission to restore the UK’s position in the global crypto market, which has been under pressure. One hot topic has been stablecoin regulation, with industry representatives challenging the Bank of England’s (BoE) proposals for restrictive holding limits.

The BoE is reconsidering its stringent measures as concern grows that the US is advancing ahead after the recently passed GENIUS Act, which aims to clarify rules for stablecoin issuers.

BoE Governor Andrew Bailey has softened his earlier concerns about private stablecoins, recognizing their innovative potential and importance in the financial landscape.