The UK crypto market is poised to expand by up to 20% following the launch of regulated crypto Exchange Traded Notes (ETNs) on Thursday, October 8, according to new research by the investment platform IG.
The Financial Conduct Authority (FCA) has confirmed that from October 8, crypto ETNs—regulated products that track the price of cryptocurrencies without requiring direct ownership—will become available to retail investors across the UK.
This move could significantly increase crypto participation. IG’s findings reveal that 30% of UK adults are now open to investing in crypto via ETNs, a notable rise compared to the current 12% crypto ownership rate reported by the FCA, and 25% in IG’s own study.
Younger Investors Driving Growth
Interest is particularly strong among younger demographics. Half of those aged 18–24 and 49% of those 25–34 expressed interest in crypto ETNs. For many, regulatory oversight and safety are the biggest draws—cited by 32% of potential investors. Another 19% view the ability to include crypto within ISAs and SIPPs (tax-efficient investment wrappers) as a major incentive.
Support for Crypto Inclusion in ISAs and Pensions
Public backing for integrating crypto into mainstream investment products is growing. 41% of respondents support including crypto in ISAs, compared to 20% opposed, while 37% support its inclusion in pension schemes, versus 21% against.
IG: ETNs Mark “A Milestone” in UK Crypto Access
Michael Healy, IG’s UK Managing Director, described the move as a “significant step forward” that opens the crypto market to millions of investors who have so far remained cautious.
“The ability to hold crypto within familiar, tax-efficient vehicles like ISAs and pensions is a real milestone,” Healy said. “However, to unlock the full potential of digital assets, the UK needs a robust regulatory framework and must consider allowing crypto ETFs, which remain banned but are more flexible and liquid.”
Healy expects that the launch of crypto ETNs will trigger a wave of adoption, especially among younger, digitally savvy investors—potentially marking the start of a new phase of mainstream crypto investing in the UK.
ETNs vs ETFs: Key Difference
While ETFs (Exchange Traded Funds) allow direct ownership of underlying assets, ETNs are debt instruments that track asset prices without direct custody. This structure provides a regulated pathway to crypto exposure without direct ownership risks. Although ETFs are more common globally, they remain prohibited in the UK.
