UK lifts ban on crypto ETNs today

The UK’s Financial Conduct Authority (FCA) has lifted the ban on cryptoasset exchange-traded notes (cETNs) on Oct 8. These products, which trade on FCA-approved Recognised Investment Exchanges like the London Stock Exchange, will be subject to strict financial promotion and Consumer Duty rules.

The FCA prohibited the sale, marketing, and distribution of derivatives and ETNs referencing unregulated transferable cryptoassets to retail consumers beginning in January 2021.

David Geale, FCA executive director, stated that the market has "become more mainstream and better understood," and that the shift provides customers with "more choice" while keeping protections in place. However, these products will not be insured by the Financial Services Compensation Scheme (FSCS), so investors must be fully aware of the dangers.

ETFs vs ETNs: What's the difference?

In the U.S., crypto products, such as spot Bitcoin funds, which were approved in early 2024, are typically structured as ETFs (Exchange-Traded Funds). An ETF is a regulated fund that holds the asset it tracks in custody, such as Bitcoin. Investors own shares of the fund, which represent their ownership stake in the asset.

In the United Kingdom and Europe, the products will be structured as Exchange-Traded Notes (ETNs). ETNs differ from endorsed ETFs in that ETNs are debt instruments issued by a financial institution. They will still have a 1:1 backing by the asset; however, they will operate within the legal system in a manner similar to a bond, rather than a fund.

What stays banned?

While civilian access to ETNs is now available, the FCA has clarified that the restriction on crypto derivatives (such as futures and options) remains in effect. The agency is also moving forward with its larger crypto plan, which includes suggestions for stablecoins and other digital asset laws.The FCA highlighted that it will continue to actively monitor the market, particularly high-risk transactions.

This story was originally reported by TheStreet on Oct 8, 2025, where it first appeared in the Policy section. Add TheStreet as a Preferred Source by clicking here.

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