The UK has officially ended its long-standing ban on crypto exchange-traded notes (ETNs), signaling a major step forward in integrating digital assets into the country’s mainstream financial markets. The Financial Conduct Authority (FCA) announced that retail investors can now access crypto ETNs listed on recognized exchanges such as the London Stock Exchange (LSE).
This move comes as the UK acknowledges the increasing maturity of the crypto market and the implementation of stronger investor protections. The decision allows for greater public participation in crypto investments through regulated and transparent financial products.
What Are Crypto ETNs?
Crypto ETNs are financial instruments that track the price of cryptocurrencies like Bitcoin or Ethereum, without requiring investors to directly buy or store the digital coins themselves. These products are fully backed by underlying crypto assets, which are securely held by regulated custodians.
For retail investors, ETNs offer a more familiar way to gain exposure to digital assets through traditional investment platforms, removing the technical barriers often associated with direct crypto ownership.
Although the FCA has lifted the ban, investors may not see these products available right away. The regulator only began accepting prospectuses from issuers in late September, meaning it will take time before crypto ETNs begin trading on UK exchanges.
Tax-Free Gains Through ISAs and Pension Schemes
In another major boost, HM Revenue & Customs (HMRC) has confirmed that crypto ETNs will be eligible for inclusion in tax-advantaged accounts. Investors will be able to hold them in Individual Savings Accounts (ISAs) and Self-Invested Personal Pensions (SIPPs), allowing for tax-free growth on their investments.
Looking ahead, from April 2026, crypto ETNs will also qualify under the Innovative Finance ISA (IFISA) category. This aligns with the UK government’s broader strategy to support fintech innovation and expand access to digital investment products.
As regulatory clarity improves and new investment opportunities emerge, the lifting of the ETN ban may mark a turning point in the UK’s approach to crypto. Retail investors will soon have more secure and tax-efficient ways to explore the digital asset space—bringing crypto one step closer to mainstream adoption.
