The FCA has confirmed that, starting 8 October 2025, retail investors in the UK will be able to buy cryptoasset-backed exchange-traded notes (cETNs) again. Investors will be able to buy cETNs that follow Bitcoin and Ether prices on recognised exchanges, such as the London Stock Exchange. The FCA says the change will let people invest in these products, but with rules in place to protect them.
Regulatory Changes and Scope
Under the new framework, only cETNs referencing Bitcoin or Ether and admitted to trading on approved exchanges may be offered to retail investors. These products, which are essentially debt instruments providing pricing opportunities to major cryptoassets, are now classified as regulated and controlled investments under the UK financial promotions regime. This step suggests the FCA feels the UK’s cETN market is ready and reliable for everyday investors.
High-risk derivatives, such as CFDs, futures, and options, remain prohibited for retail clients. Allowing cETNs again points to the need for controlled and regulated options for people interested in crypto. These products allow investors to participate in digital asset markets in a controlled and transparent manner, with risk managed through strict regulation.
Some retail investors may already be familiar with Bitcoin casinos, which have gained popularity for offering secure, user-friendly access to crypto-based gaming and transactions. Users of these platforms usually benefit from fast deposits and withdrawals, cheaper fees than regular financial services, and greater privacy. While crypto casinos serve a different purpose than cETNs, both illustrate how clear regulation and strong operational standards can foster trust and accessibility in the digital asset space.
Consumer Protection Requirements
Retail access to cETNs is contingent on a series of strict safeguards. Only products traded on FCA-recognised investment exchanges are eligible, ensuring a regulated environment. Firms must conduct appropriateness assessments to ensure investors understand the risks and that the product suits their experience and financial situation. Clear and prominent risk disclosures are also mandatory, promoting transparency and responsible decision-making.
It is important to note that losses on cETNs remain outside the protection of the Financial Services Compensation Scheme (FSCS) and the Financial Ombudsman Service (FOS). The FCA has stressed that retail investors trying to figure out what crypto to buy should only do so on sites that make the risks clear and keep them protected.
Commercial Opportunities and Challenges
Making retail cETNs available again opens up potential business for brokers, trading platforms, and issuers. Firms entering this space will need to secure relevant exchange approvals, adhere to FCA financial promotions rules, and integrate Consumer Duty requirements into investor onboarding and education programmes. Certain products have built-in protections, like capped losses or automatic rebalancing, to make them safer for cautious investors.
We may also see new types of structured ETNs that offer more tailored risk options than just following the spot price. Platforms that make it easy for investors to understand what they are buying, how the mining process works, and how to keep their trades secure may do better than others. Investors prefer platforms that are clear about how things work. Explaining the risks properly helps people feel more confident about their choices. Examples from regulated crypto casinos show that having clear rules and explaining things properly can help people trust and use digital products.
Strategic and Global Context
Allowing regulated cETNs brings the UK in line with global peers in the US and EU, where similar regulated products offer crypto exposure under strict oversight. Unlike direct crypto ownership, which can be highly volatile and susceptible to fraud, FCA-regulated ETNs provide a structured and transparent alternative. People can now access crypto markets under rules that make the process safer.
The FCA is allowing new crypto products but making sure people are protected at the same time. The regulator has set clear rules so that people can take part safely and know what to expect. Other countries may use the UK’s rules as an example when deciding how to let people invest in crypto safely.
Key Details at a Glance
The effective date for retail access to cETNs is 8 October 2025. Eligible products are limited to FCA-listed cETNs for Bitcoin and Ether. Retail access conditions specify that these products can be accessed only via compliant execution-only platforms or through financial advisers.
Prohibited products include high-risk crypto derivatives such as CFDs, futures, and options.
The regulatory classification of these ETNs is Restricted Mass Market Investment (RMMI).
Investor protection is limited, with no coverage from the Financial Services Compensation Scheme (FSCS) or the Financial Ombudsman Service (FOS).
Firm obligations include conducting suitability assessments, providing robust risk disclosures, and ensuring compliance with Consumer Duty principles.
Conclusion
The FCA allowing retail investors to use crypto ETNs is a careful but important move for the UK’s regulated financial market. Retail investors now have a safer, structured way to gain exposure to Bitcoin and Ether, backed by robust safeguards and clear rules. For companies, the market offers opportunities, but success depends on well-designed products, following the rules closely, and being clear with customers.
The FCA is letting people invest in crypto again, but there are rules in place to keep it safe. Carefully designed cETNs could give retail investors a simple way to access crypto in a regulated environment.
