British savers could soon gain easier access to digital assets as the UK Financial Conduct Authority (FCA) prepares to lift its ban on crypto exchange-traded notes (ETNs)—a move expected to unlock nearly $1 trillion in potential savings for the crypto sector. The focus keyword is UK crypto ETN ban.
ETNs are exchange-traded debt instruments that track the price of an underlying asset, similar to ETFs, but without requiring investors to hold the asset directly. The FCA’s decision marks a major shift from its 2021 ban, which prohibited retail investors from buying or marketing crypto-linked ETNs and derivatives. The restriction will officially end on October 8, potentially transforming the UK into one of Europe’s largest and most regulated crypto markets.
“The UK has the potential to be the biggest crypto market in Europe, especially if crypto becomes eligible for ISAs and SIPPs,” said Dan Gold, founder of AI-powered investment platform Stratiphy, in comments to DL News.
Tax-Free Accounts Could Drive Crypto Investment Boom
One of the most significant questions is whether crypto ETNs will qualify for the UK’s tax-advantaged investment accounts—Individual Savings Accounts (ISAs) and Self-Invested Personal Pensions (SIPPs). These vehicles currently hold more than $930 billion in assets, according to 2023 government data.
If regulators approve ETNs for inclusion, even a small reallocation from traditional investments could bring an unprecedented wave of capital into crypto markets.
UK-based trading app Freetrade said it is awaiting confirmation from HM Revenue and Customs (HMRC) on eligibility. “Our understanding is that Bitcoin and Ethereum ETNs will be available, and those will be the ones we offer,” said Alex Campbell, Freetrade’s head of external affairs.
Crypto Regulation Returns to the UK Policy Agenda
The lifting of the UK crypto ETN ban comes as regulators renew their focus on digital assets after the 2024 general election. In August, a cross-party parliamentary group restarted efforts to advance crypto regulation.
The FCA followed in September with a public consultation on new crypto trading rules, shortly before the UK and the US announced a joint taskforce to improve cooperation on crypto oversight and financial supervision.
This regulatory momentum signals that the UK is positioning itself as a credible, innovation-friendly hub for digital finance while ensuring investor protection.
Investor Interest Surges Ahead of Rule Change
New research shows strong appetite among retail investors. A Norstat survey for IG found that 30% of 2,500 investors would consider buying crypto through ETNs—up from the 12% of adults who held digital assets in 2024, according to the FCA.
“We expect a surge in crypto adoption, especially among younger generations already familiar with digital assets,” said Michael Healy, IG’s UK managing director. “This could mark the beginning of a new era of mainstream crypto investing in Britain.”
IG, Stratiphy, and Freetrade are all preparing to roll out crypto ETN products once regulations officially take effect.
Regulated Platforms Bring Accessibility and Trust
ETNs will trade on regulated exchanges alongside traditional assets, providing greater security and ease of access compared to direct crypto purchases.
“For many, the appeal is convenience—buying crypto through trusted platforms instead of navigating complex exchanges,” said Campbell of Freetrade.
While the FCA will continue to restrict crypto ETFs, the approval of ETNs represents a pivotal step toward integrating digital assets into the UK’s mainstream financial system. Analysts say it could open one of Europe’s largest new investment channels and accelerate the country’s goal of becoming a global crypto-finance hub.
