Firms will soon be able to give retail consumers access to crypto exchange traded notes (cETNs), under changes announced by the FCA.

Crypto ETNs that retail consumers can access must be traded on an FCA-approved, UK-based investment exchange (a Recognised Investment Exchange or RIE). Financial promotion rules will apply so consumers get the right information and aren’t offered inappropriate incentives to invest.

David Geale, executive director of payments and digital finance at the FCA, said:

‘Since we restricted retail access to cETNs, the market has evolved, and products have become more mainstream and better understood. In light of this, we’re providing consumers with more choice, while ensuring there are protections in place. This should mean people get the information they need to assess whether the level of risk is right for them.’

The Consumer Duty will apply to firms offering these products to retail investors. However, there won’t be coverage from the Financial Services Compensation Scheme (FSCS). Consumers should ensure they understand the risks before deciding to invest.

This is the latest development as the FCA continues to establish a regulatory framework for crypto. We have outlined our crypto roadmap and recently published proposals on stablecoins as well as other aspects of the regime.

The FCA’s ban on retail access to cryptoasset derivatives will remain in place. The FCA will continue to monitor market developments and consider its approach to high-risk investments.

Source: FCA

Dovile Silenskyte, director, digital assets research at WisdomTree, said in an email to Markets Media:

“The FCA’s decision to permit retail access to UK-listed crypto exchange-traded products (ETPs), effective from 8 October, marks a pivotal moment in the broader integration of digital assets into the financial system. It reflects a more mature ecosystem, strengthened by institutional involvement, clearer regulation, and the proven success of bitcoin ETPs in the US.

“By accessing crypto through ETPs, retail investors can now engage with crypto in a safer, more transparent environment, in doing so reducing the risks of unregulated platforms. By offering digital assets through the familiar ETP structure, these products make it easier for investors to evaluate and manage crypto within the context of their broader portfolios, in turn supporting more informed decision-making in pursuit of long-term investment goals. While these products remain subject to the FCA’s mass market restriction, today’s move lays important groundwork for broader retail engagement under a regulatory framework.”