The UKโs Financial Conduct Authority will allow retail investors access to crypto exchange-traded notes starting October 8, 2025, enabling investment in Bitcoin and Ethereum through recognized exchanges.
This regulatory shift offers UK retail investors new opportunities in the crypto market, potentially boosting interest and liquidity in Bitcoin and Ethereum ETNs.
The UK Financial Conduct Authority will lift its ban on retail investor access to crypto exchange-traded notes (ETNs) starting October 8, 2025. This decision enables UK retail investors to invest in ETNs tracking assets like Bitcoin and Ethereum.
The move involves the FCAโs announcement to remove restrictions imposed in 2021 due to volatility concerns. ETNs can be offered through Recognised Investment Exchanges. The FCA emphasizes compliance with UK Consumer Duty regulations.
FCA Set to End Crypto ETN Ban by 2025
โSince we restricted retail access to cETNs, the market has evolved, and products have become more mainstream and better understood.โ โ David Geale, Executive Director, Payments and Digital Finance, FCA
UK Decision Could Boost Bitcoin, Ethereum Investment
The financial market anticipates increased inflows into Bitcoin and Ethereum ETNs. The decision aligns with global trends where opening the market to retail investors led to notable liquidity rises in similar scenarios worldwide.
Analysts highlight potential increases in BTC and ETH prices, backed by historical trends of previous market openings. FCA clarifies that these products do not fall under the Financial Services Compensation Scheme, impacting investor protections.
Germany, US ETN Access Boosted Crypto Markets
Germany and the US previously allowed retail ETN access, resulting in price and liquidity surges for major cryptocurrencies. In the US, the approval of a Bitcoin spot ETF saw a $15B capital influx within months.
Kanalcoin experts predict that while initial responses show potential BTC and ETH inflows, regulated environments may mitigate extreme volatility. Monitoring post-implementation will provide more insights.
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