FCA Opens Retail Market to Crypto Exchange-Traded Notes from October 2025

The Financial Conduct Authority (FCA) has confirmed that retail investors will be able to access crypto exchange-traded notes (cETNs) from 8 October 2025, marking a significant shift in the UK’s approach to crypto investment products.

Under the new rules, only cETNs traded on an FCA-approved, UK-based Recognised Investment Exchange (RIE) will be eligible for retail sale. Financial promotion rules will apply, ensuring that investors receive clear, accurate information and are not exposed to inappropriate incentives.

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 FCA stressed that while the Consumer Duty will apply to firms offering cETNs, these products will not be covered by the Financial Services Compensation Scheme (FSCS). Retail consumers are urged to fully understand the risks before investing.

This latest decision forms part of the FCA’s broader cryptoasset regulatory roadmap, which also includes recent proposals on stablecoins and other elements of the UK crypto regime. The regulator’s long-standing ban on retail access to cryptoasset derivatives will remain in force.

The FCA first introduced the retail ban on derivatives and ETNs referencing unregulated transferable cryptoassets in January 2021. It began easing restrictions for professional investors in March 2024 by permitting recognised exchanges such as Cboe and the London Stock Exchange to create UK-listed cETN segments. Following a public consultation launched in June 2025, the regulator has now decided to extend access to retail clients, while continuing to monitor the market and assess high-risk investment approaches.

For firms, the change represents both an opportunity and a compliance challenge. Providers must ensure that their product governance, disclosure, and risk communication processes align with FCA expectations ahead of the October implementation date.

Read the press release here.