FCA Lifts ETN Ban Today — but UK Retail Investors Still Waiting for Market Access

The Financial Conduct Authority (FCA) officially lifted its ban on crypto exchange-traded notes (ETNs) on Wednesday, but UK retail investors are still unable to buy them — a delay that critics say exposes deep flaws in Britain’s regulatory process.

“Today’s news that UK retail investors face yet another delay in accessing crypto ETNs is both embarrassing and entirely predictable,” said Laurent Kssis, director at CEC Capital and an ETF trading consultant told CryptoNews.

“The FCA announced in August that the ban would lift on October 8th, yet here we are on launch day discovering that investors may have to wait nearly a week longer because the regulator only began accepting prospectuses on September 23rd — just two weeks before the supposed launch date,” adds Kssis.

Sources suggest the London Stock Exchange (LSE) and FCA are still finalising operational details, including whether a new trading segment is needed for retail-eligible crypto ETNs. This uncertainty could push the first listings to October 13th or later.

“We welcome the FCA’s decision to enable retail access to crypto ETNs and look forward to expanding our Main Market offering to include crypto ETNs for retail investors, once the FCA has approved the Retail Base Prospectuses submitted by prospective issuers,” Alex Watkins, ETP Business Development Lead, London Stock Exchange told CryptoNews.

Consumer Protection or Bureaucratic Paralysis?

“The FCA has had since their June consultation to coordinate with the LSE on implementation details, yet they’re still ‘going back and forth’ while UK investors remain locked out of a market their European and American counterparts have accessed freely,” Kssis said.

He called the situation “regulatory incompetence masquerading as consumer protection.” Bitcoin’s surge past $120,000 this year has amplified frustration among retail investors unable to gain regulated exposure through UK channels.

London’s Liquidity Problem

Despite the FCA’s rhetoric about investor choice, the London market remains an afterthought in the broader European crypto landscape. According to LSE data, crypto ETN trading volumes represent just 0.59% of total European activity, averaging £624,000 per day.

By comparison, European exchanges handled €26 billion in crypto ETN trading in 2024. “The UK has fallen embarrassingly behind in the global race for crypto market leadership,” Kssis added.

“This rollout confirms what many of us feared — the FCA’s lifting of the ban is more about political optics than genuine market access,” said Kssis.

Industry Sees Hope Amid Frustration

Still, some remain optimistic that the ban’s removal signals long-term progress. “The FCA lifting its ban on retail access to crypto ETNs is a huge step toward embracing innovation,” said Russell Barlow, CEO of 21Shares.

“There’s enormous pent-up demand for regulated cryptoasset products in the UK, with 12% of adults already holding crypto directly through unregulated platforms,” said Barlow.

Barlow said regulated Bitcoin and Ethereum ETNs could soon qualify for ISA and SIPP inclusion — enabling tax-efficient exposure to cryptoassets. “It’s a great first step,” he said, “but there’s still a long way to go before cryptoassets are fully integrated into the financial system.”