The UK may finally be easing its grip on crypto investment products. After banning retail access to crypto exchange-traded notes (cETNs) back in 2020, the Financial Conduct Authority (FCA) is now proposing to lift that ban. If approved, everyday investors in the UK would be able to trade cETNs, regulated products that give exposure to cryptocurrencies like Bitcoin and Ethereum, through official trading platforms.
This move comes as global interest in crypto investment products continues to grow. Earlier this year, the US approved several spot Bitcoin ETFs, which have already attracted billions in investments from both institutional and retail buyers. Now, the UK is under pressure not to fall behind.
Industry Says, ETFs Should Be Next
In our response to the FCA’s consultation, CryptoUK welcomed the proposal to lift the ban on retail access to cryptoasset exchange traded notes (cETNs). But we also believe it’s time to start the conversation about retail access to crypto ETFs.
Spot Bitcoin ETFs approved in the… pic.twitter.com/tjnOLnuIWm
— CryptoUK 🇬🇧 (@CryptoUKAssoc) July 25, 2025
CryptoUK, the country’s leading industry group, welcomed the FCA’s decision but made it clear, this should be just the beginning. In their official response, they argued that crypto ETFs (exchange-traded funds) are a safer and more familiar option for most investors compared to holding crypto directly. ETFs avoid self-custody risks, often have lower fees, and are already widely used in traditional finance.
Firms like 21Shares and Coinbase UK echoed that sentiment, urging regulators to go beyond cETNs. They pointed out that limiting access might push investors toward unregulated offshore exchanges, increasing risk instead of reducing it.
Moreover, product issuer 21Shares backed wider access too, warning the FCA against drawing the circle so small that UK savers are pushed back toward unregulated offshore platforms. Coinbase UK’s Keith Grose called the UK a “second mover” advantage player. By learning from successful models in the US and Europe, the UK can implement a clearer framework for regulated crypto products. But they also warn that delays could put the UK further behind countries like Germany and Switzerland, where retail access to crypto ETFs is already active.
What This Means for Crypto
The UK’s FCA is reviewing whether to allow retail investors to access crypto exchange-traded notes (cETNs), with final rules expected after summer. Key decisions include whether to expand beyond Bitcoin and Ethereum, and whether spot crypto ETFs could follow. For now, cETNs may offer a regulated way for UK savers to get crypto exposure without handling private keys. But both regulators and industry stress that the risks remain high, with potential for full losses due to volatility.
