British savers could soon gain easier access to crypto investments. The UK Financial Conduct Authority (FCA) is preparing to lift its ban on crypto exchange-traded notes (ETNs), potentially unlocking close to $1 trillion in savings for the sector.<\/p>\n
ETNs are debt securities that mirror the price of an underlying asset. They trade on exchanges much like exchange-traded funds (ETFs) and offer investors a simple way to gain exposure without holding the asset directly.<\/p>\n
The FCA introduced the ban in January 2021, stopping retail investors from buying or marketing crypto ETNs and derivatives tied to unregulated assets. That restriction ends on October 8, a move that could position the UK as one of Europe\u2019s biggest crypto markets.<\/p>\n
\u201cThe UK has the potential to be the largest crypto market in Europe, especially if crypto\u2019s eligibility for individual savings and self-invested personal pension accounts is confirmed,\u201d said Dan Gold, founder of Stratiphy, an AI-powered investment platform, in an interview with DL News<\/a><\/em>.<\/p>\n A key question is whether crypto ETNs will qualify for popular tax-free investment accounts. In the UK, residents can put money into Individual Savings Accounts (ISAs) and Self-Invested Personal Pensions (SIPPs) to invest without paying tax on their gains. But investments must be made through regulated exchanges.<\/p>\n These accounts hold more than $930 billion in assets, based on 2023 government data. If ETNs qualify, even a small shift in allocation could bring a large wave of capital into crypto markets.<\/p>\n For now, eligibility remains unclear. Freetrade, a UK-based fintech platform, is waiting for formal guidance from the tax authority, HMRC.<\/p>\n \u201cOur understanding is that Bitcoin and Ethereum ETNs will be on offer and those will be the ones we offer,\u201d said Alex Campbell, Freetrade\u2019s head of external affairs.<\/p>\n The policy change comes as UK regulators renew their focus on digital assets after a pause following the 2024 general election. In August, a cross-party parliamentary group relaunched efforts to prioritise crypto legislation.<\/p>\n The FCA followed up in September with a consultation on new crypto rules. Days later, the UK and the US formed a joint taskforce to strengthen cooperation on crypto regulation and financial oversight.<\/p>\n New research suggests the end of the ban could trigger a sharp rise in crypto adoption. A survey by Norstat for IG, a UK trading platform, found that 30% of 2,500 investors would consider buying crypto through ETNs. That\u2019s a big jump from current ownership levels\u2014an FCA report from late 2024 found only 12% of UK adults held crypto at the time.<\/p>\n \u201cWe expect a surge in crypto adoption, especially among younger generations already comfortable with digital assets,\u201d said Michael Healy, IG\u2019s UK managing director. \u201cThis could mark the start of a new phase of mainstream crypto investing in the UK.\u201d<\/p>\n IG expects to roll out crypto ETNs to customers within the next few months. Stratiphy and Freetrade also plan to list ETNs as soon as regulations allow.<\/p>\n For many investors, the main draw of ETNs is the sense of safety that comes with trading through regulated exchanges. Unlike buying crypto directly, ETNs will be listed alongside stocks and other financial products, making them easier to access.<\/p>\n \u201cFor many folks, having this simple way to get access to crypto is particularly more attractive than going through the hassle of setting up accounts on a separate exchange,\u201d Campbell said.<\/p>\n While the FCA is easing restrictions on ETNs, crypto ETFs will remain banned for now. Even so, the upcoming rule change could reshape how British savers interact with crypto\u2014potentially opening the door to one of the largest new investment channels in Europe.<\/p>\n (Photo by Ewan Kennedy<\/a>)<\/em><\/p>\n See also: US SEC weighs tokenised stock trading on cryptocurrency exchanges<\/a><\/p>\nTax-advantaged accounts could boost demand<\/h3>\n
Crypto regulation returns to the agenda<\/h3>\n
Investors show rising interest<\/h3>\n
Familiar platforms, new products<\/h3>\n
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