The UK's crypto investment landscape is witnessing a dramatic shift as a fierce battle for market share erupts among crypto Exchange Traded Notes (ETNs) providers following the lifting of a four-year ban on retail access. The Financial Conduct Authority (FCA) officially reversed its 2021 ban on October 8, 2025, allowing retail investors to access Bitcoin and other crypto assets through ETNs traded on FCA-approved investment exchanges like the London Stock Exchange. This move has ignited intense competition, with issuers slashing fees to attract investors in what has been described as a "cut-throat battle".
The FCA's initial ban in January 2021 stemmed from concerns about volatility, valuation issues, and a lack of understanding among retail investors regarding crypto assets. However, the regulator has gradually eased restrictions, first by allowing professional investors access to Bitcoin and Ether ETNs in 2024, and then by initiating consultations in June 2025 to consider lifting the retail ban. The recent formal approval marks a significant milestone for the UK, potentially reigniting its ambition to become a leading global center for digital finance.
The newly accessible ETNs include offerings from 21Shares, Fidelity, and CoinShares, with some providers dropping fees drastically to gain a competitive edge. Some issuers have lowered fees to as little as 0.05%, while others continue to charge up to 2.5% annually. 21Shares has reduced fees for its Core Bitcoin and Ethereum Core Staking ETPs to 0.1%, Fidelity's Physical Bitcoin ETP now charges 0.25%, and CoinShares' Physical Staked Ethereum ETP currently has no management fee.
Industry figures have welcomed the policy change, with Ian Taylor, board advisor at CryptoUK, expressing satisfaction with the reversal and highlighting the progress made towards a more balanced approach to consumer risk. Michael Healy, UK Managing Director at IG, noted that crypto ETNs represent a significant step forward, opening access to millions of investors previously excluded or cautious.
The UK's move to allow retail access to crypto ETNs aligns it with other countries like the United States, Canada, and those in the European Union, where regulated crypto investment products are already available. This shift is part of a broader initiative to bolster the UK's position in global crypto adoption, which has been lagging.
According to research from IG Group, the UK crypto market could grow by as much as 20% following the introduction of retail-accessible ETNs. Their survey indicated that nearly a third of UK adults would consider investing in crypto via ETNs, with interest strongest among younger investors. Nearly half of those aged 18 to 34 expressed interest.
The FCA emphasizes that while it permits these products, they may not be suitable for all investors. The regulator has implemented measures to protect consumers, including financial promotion rules, appropriateness assessments, client categorization, cooling-off periods, and risk warnings. Firms offering crypto ETNs must also comply with the Consumer Duty, ensuring good outcomes for consumers, supporting their financial objectives, and acting in good faith.
While the lifting of the ban and the resulting competition are seen as positive developments, some experts caution that further progress is needed for the UK to fully unlock crypto's potential. IG's Healy stated that a proper regulatory framework is essential to avoid falling behind global peers. There are also ongoing discussions regarding the treatment of stablecoins, with industry participants opposing stringent corporate holding limits proposed by the Bank of England (BoE). The BoE is reportedly reconsidering its stance due to concerns that the United States is progressing with legislation to establish clearer rules for stablecoin issuers.
